Cadence’s $5.7 million raise wins strong shareholder participation
3 min read
9:35am on Tuesday 22nd of September, 2026 AEST ~9am, 22nd Sept, 26
Cadence Opportunities Fund has raised $5.7 million through a strongly supported share purchase plan and placement, increasing the company’s net tangible assets by 17%. The new shares will also qualify for upcoming fully franked dividends.
- $3.3 million SPP attracted about 230 shareholders
- $2.3 million placement priced at $2.21 per share
- Capital raising expected to lift NTA by 17%
- New shares qualify for 7.5 cents final and 2.0 cents special dividends
- Company cites an 11% annualised gross yield at the issue price
Share Plan Draws Broad Participation
Cadence Opportunities Fund Limited (ASX:CDO) has secured $5.7 million from shareholders and professional investors, with the company saying the raising will increase net tangible assets by 17%. The result gives the listed investment company fresh capital while advancing the board’s stated aim of growing the fund, improving share liquidity and reducing its fixed expense ratio.
The shareholder component attracted applications worth approximately $3.3 million from about 230 eligible investors. That represented participation from 34% of CDO’s shareholders, a sizeable response for a listed investment company share purchase plan. The SPP shares are expected to be issued on 23 September 2026.
Placement Matches SPP Pricing
Cadence separately completed a $2.3 million placement to professional and sophisticated investors, receiving firm commitments for about 1.1 million new ordinary shares at $2.21 each. The issue price was the same as the SPP price and was struck between the company’s pre-tax and post-tax net tangible asset per share.
The placement used CDO’s existing capacity under ASX Listing Rule 7.1, with the company confirming that the shares were allocated to non-related parties. Settlement is expected on 24 September, followed by issue on 25 September. Those dates mean the transaction remains partly prospective rather than fully reflected in the issued capital at the time of the announcement.
New Shares Carry Upcoming Dividends
The attraction for participating investors extends beyond the issue price. Shares issued under both components will rank equally with existing shares and qualify for the upcoming fully franked final dividend of 7.5 cents per share and special dividend of 2.0 cents per share.
At the $2.21 issue price, Cadence describes those distributions as an annualised 11% gross yield, or a 7.7% fully franked yield including the special dividend. The figures are tied to the stated upcoming payments, so the key near-term test is whether settlement and issue proceed as expected and how the enlarged capital base affects CDO’s final NTA per share.
Bottom Line?
The raise has attracted meaningful shareholder participation, but the investment case now turns on the final issued capital, post-raising NTA per share and delivery of the promised dividends.
Questions in the middle?
- What will CDO’s final NTA per share be once the SPP and placement shares are issued?
- Will the larger capital base materially improve trading liquidity and reduce the fixed expense ratio?
- Will the 7.5 cents final dividend and 2.0 cents special dividend be paid on the expected timetable?
