Supply Network Sets DRP Price at $33.53 Ahead of Fully Franked Dividend
Supply Network Limited confirms a fully franked dividend of AUD 0.38 per share for FY2025, with shares under its Dividend Reinvestment Plan priced at AUD 33.53 each, reflecting a 2.5% discount.
- Ordinary fully franked dividend of AUD 0.38 per share declared
- Dividend relates to financial year ending 30 June 2025
- Dividend Reinvestment Plan (DRP) price set at AUD 33.53 per share
- DRP shares issued on 2 October 2025 with a 2.5% discount applied
- No external approvals required for dividend payment
Dividend Announcement and Financial Context
Supply Network Limited (ASX, SNL) has updated its dividend announcement for the financial year ending 30 June 2025, confirming an ordinary dividend of AUD 0.38 per share. This dividend is fully franked, reflecting the company’s confidence in its profitability and tax position. The record date for shareholders to be eligible for this dividend was 18 September 2025, with payment scheduled for 2 October 2025.
Dividend Reinvestment Plan Pricing Details
Alongside the dividend declaration, the company has set the price for shares issued under its Dividend Reinvestment Plan (DRP) at AUD 33.53 per ordinary share. This price incorporates a 2.5% discount to the volume weighted average market price over the five business days following the ex-dividend date, capped at AUD 38.00. The DRP shares will be newly issued and are expected to be allotted on 2 October 2025, the same day as the dividend payment.
Implications for Shareholders and Market
The DRP offers shareholders an opportunity to reinvest their dividends into additional shares at a slight discount, potentially enhancing long-term value. The full franking of the dividend adds further appeal, as it provides Australian investors with tax credits. Notably, the default option for shareholders who do not make an election is to receive the dividend in cash, which may influence participation levels in the DRP.
Importantly, no external approvals, such as from regulators or courts, are required for this dividend payment, suggesting a straightforward process and reinforcing the company’s stable financial footing. However, the announcement does not specify the expected total dividend payout or the anticipated level of DRP participation, leaving some uncertainty about the capital impact.
Looking Ahead
As the DRP shares are issued, investors will be watching closely for any market reaction to the dilution effect and the company’s ongoing financial performance. The capped DRP price and the discount mechanism indicate a balanced approach to rewarding shareholders while managing share capital expansion.
Bottom Line?
Supply Network’s dividend and DRP pricing set the stage for shareholder returns and potential capital shifts in early October.
Questions in the middle?
- What level of shareholder participation will the DRP attract given the default cash option?
- How will the issuance of new shares under the DRP impact Supply Network’s share price post-October 2?
- Will the company maintain this dividend level and DRP discount strategy in future financial years?
