Fat Prophets Opens $30,000 Share Purchase Plan for Eligible Investors

Context and Offer Details

Fat Prophets Global Contrarian Fund (ASX, FPC) has announced a Share Purchase Plan (SPP) aimed at raising additional capital by inviting eligible shareholders to purchase more shares at a potentially discounted price. The plan allows shareholders based in Australia and New Zealand, who held shares as of 7pm Sydney time on 13 August 2025, to subscribe for up to $30,000 worth of shares.

The issue price for the SPP shares will be the lower of $1.30 or the five-day volume weighted average price (VWAP) leading up to the closing date on 10 September 2025. This pricing mechanism offers shareholders a chance to buy shares at a price that reflects recent market activity, potentially providing a discount to the current trading price.

Participation and Process

Participation in the SPP is entirely optional and non-transferable. Eligible shareholders with Australian addresses can apply via BPAY, while those in New Zealand can participate through direct bank transfer. The fund has provided clear instructions and an online portal for applications and payments, ensuring accessibility and convenience for investors.

The timetable is tight but straightforward, the offer opened on 18 August 2025 and will close at 5pm Sydney time on 10 September 2025. Following the close, shares will be allotted and issued on 16 September, with trading expected to commence on the ASX the next day.

Strategic Implications

This capital raising move signals Fat Prophets’ intent to bolster its financial position, potentially to support new investments or strengthen its balance sheet. While the fund has not disclosed a target amount for the raise, the maximum subscription per shareholder suggests a meaningful injection of capital if uptake is strong.

However, shareholders who choose not to participate risk dilution of their existing holdings, as the issuance of new shares will increase the total number of shares on issue. This dynamic often encourages participation, especially when shares are offered at a discount.

Looking Ahead

Chairman Michael Gallagher’s letter underscores the fund’s commitment to transparency and shareholder engagement, providing multiple channels for questions and support. Investors will be watching closely to see the final issue price and the level of shareholder participation, which will offer insights into market confidence in Fat Prophets’ strategy moving forward.