Cadence Opportunities Fund Opens $30,000 SPP at 3.5% Discount to Market

Share Purchase Plan Offers Shares at Net Tangible Asset Value

Cadence Opportunities Fund Limited (ASX:CDO) has kicked off a Share Purchase Plan (SPP) giving eligible Australian and New Zealand shareholders the chance to buy shares at $2.21 each. This price represents a 3.5% discount to the $2.29 closing share price on 28 August 2026, the record date for eligibility. The SPP opens on 3 September and closes on 17 September, with new shares expected to be issued on 23 September.

The discount effectively lets investors buy shares at the fund's pre-tax net tangible assets (NTA), rather than at the premium CDO has traded at since announcing its recent dividends and full-year results. CDO shares have been trading at a premium ranging from 3% to 18%, so this offer could appeal to shareholders seeking a more value-aligned entry point.

Strong Portfolio Performance and Dividend Yield Support SPP Appeal

As of 28 August, CDO’s portfolio had gained approximately 5.0% in August alone, building on a robust FY26 performance with a 30.3% portfolio return. Including dividends and franking credits, the share price return for the year was 41%. Over its 7.5-year history, the fund has delivered an impressive 22.8% annualised return, positioning it among Australia’s top-performing investment companies.

Shareholders who participate in the SPP will be entitled to the upcoming fully franked final dividend of 7.5 cents per share and a special fully franked dividend of 2.0 cents per share. Together, these dividends equate to an annualised gross yield of 11% or a fully franked yield of 7.7%. The fund’s profit reserve stands at 73 cents per share; enough to cover more than four years of dividends; and franking credits total 16.2 cents per share, equivalent to 2.5 years of fully franked dividends.

Board and Management Back the Capital Raise

The Cadence board has signalled its intention to participate in the SPP, underscoring confidence in the fund’s outlook. The capital raise aims to grow the company’s size, which should help improve share liquidity and reduce the fixed expense ratio; benefits that typically appeal to investors in closed-end funds.

The SPP is open to shareholders registered at 7.00pm (AEST) on 28 August 2026 with addresses in Australia or New Zealand. Eligible shareholders can apply for parcels ranging from $500 up to the maximum $30,000. The offer is non-renounceable, meaning rights to purchase shares cannot be transferred.

No Brokerage Fees and Potential Scale-Back

Participation in the SPP comes with no brokerage, commissions, or transaction fees, making it cost-effective for shareholders to increase their holdings. However, the company reserves the right to scale-back applications at its absolute discretion if demand exceeds supply. Any excess application monies would be refunded without interest.

Investors should note that the SPP is not underwritten, so the final capital raised will depend on shareholder uptake. Also, there is a market risk that the share price could fluctuate between the offer and issue dates, potentially impacting the value of shares purchased under the plan.