Fat Prophets Invites Shareholders to Boost Fund with $30M Share Purchase Plan
Fat Prophets Global Contrarian Fund Limited invites eligible shareholders to participate in a $30 million Share Purchase Plan aimed at strengthening capital and enhancing liquidity without brokerage fees.
- Share Purchase Plan offers up to A$30,000 per eligible shareholder
- Offer price set at lower of $1.30 or five-day VWAP minus 2% discount
- Maximum issuance capped at 30% of existing shares with potential scale back
- Funds to support investment in Chinese tech, Japanese financials, and precious metals
- SPP not underwritten; participation voluntary and limited to Australia and New Zealand shareholders
Share Purchase Plan Details
Fat Prophets Global Contrarian Fund Limited (FPC) has announced a Share Purchase Plan (SPP) offering eligible shareholders in Australia and New Zealand the opportunity to purchase up to A$30,000 worth of new fully paid ordinary shares. The plan is designed to raise up to 30% of the company's existing shares, equating to approximately 8.25 million new shares, subject to scale back if demand exceeds this cap.
The offer price will be the lower of $1.30 or the five-day volume weighted average price (VWAP) prior to and including the closing date, less a 2% discount. This pricing mechanism aims to provide shareholders with a fair entry point while encouraging participation. Importantly, the SPP is offered without brokerage or transaction costs, enhancing its attractiveness to investors.
Strategic Rationale and Market Context
According to Chief Investment Officer Angus Geddes, the capital raised will enable the Fund to capitalize on compelling investment opportunities aligned with its contrarian strategy. Recent strong performances in Chinese large-cap technology stocks, Japanese banks and financials, and precious metals underpin the Fund’s confidence in future growth. The Fund highlights a notable turnaround in Chinese equities, driven by policy stimulus and innovation in AI and electric vehicles, alongside robust earnings in Japanese financials benefiting from rising interest rates.
Precious metals have also surged, with gold reaching US$3,500 per ounce and platinum posting significant gains, reflecting inflationary pressures and geopolitical tensions. The Fund anticipates that a weakening US dollar could further fuel this sector’s momentum.
Implications for Shareholders and Market
The SPP aims to increase the Fund’s capital base, which is expected to improve liquidity and market relevance, potentially attracting broker and research coverage. While participation is voluntary and limited to shareholders with registered addresses in Australia or New Zealand as of 13 August 2025, the Fund reserves the right to scale back applications to manage oversubscription. The SPP is not underwritten, introducing some risk regarding the total capital raised.
Shares issued under the SPP will rank equally with existing shares and are expected to be quoted on the ASX by 16 September 2025. Shareholders should note that those participating will not be entitled to the special dividend payable on 25 September 2025.
Participation Process and Timelines
The offer opens on 18 August 2025 and closes at 5, 00 pm Sydney time on 10 September 2025. Eligible shareholders must apply via BPAY® using personalized reference numbers provided in their application forms. The Fund emphasizes the importance of consulting financial advisors before participating, given the speculative nature of the investment and potential market price fluctuations between application and allotment.
Bottom Line?
As Fat Prophets seeks to leverage recent sector gains through this capital raise, investor uptake and market response will be key indicators of confidence in its contrarian strategy.
Questions in the middle?
- Will the SPP fully subscribe given it is not underwritten?
- How will potential scale back impact smaller versus larger shareholders?
- What is the Fund’s plan if market conditions shift before the closing date?
