In a statement via the ASX, WAM Capital said the SPP will be offered to existing shareholders at the fixed price of $1.90 per share.
“Shareholders who participate in the SPP offer will be entitled to the seven cent fully franked interim dividend (which will be paid on 30 April 2015) on shares issued under the SPP,” the statement from WAM Capital said.
“Based on the SPP price of $1.90, a 14 cent FY2015 fully franked dividend equates to a yield of 7.4 per cent or 10.6 per cent on a grossed up basis,” it said.
WAM Capital said it intends to invest the proceeds from the SPP in accordance with the company’s investment process.
“The company will maintain its focus of investing in undervalued growth companies that have strong earnings, trade on low price to earnings multiples, have an experienced management team and are well positioned in their industry,” the statement said.
“As [of] 31 December 2014, WAM held gross assets of $621 million and had a before tax NTA of $1.77 per share.”
“Of the assets held, 51.6 per cent were allocated to Australian equities with the remaining 48.4 per cent held in cash,” it said.
The listed investment company also said if applications for SPP shares exceed $100 million the board may, at its discretion, allocate less than the number of shares applied for and determine to apply the scale back to the extent it sees fit.
