10 things that can help your Share Purchase Plan succeed!

Share Purchase Plans are a popular way to raise capital as they are relatively easy and inexpensive

Share Purchase Plans are a popular way to raise capital as they are relatively easy and inexpensive.

Based on our experiences running successful campaigns we’ve put together 10 things you can do to make your next Share Purchase Plan a success.

1. Ensure you have a cut through message! Don’t assume everyone remembers all the great things that made them invest in the first place. Use your SPP as an opportunity to remind them, whilst also explaining and convincing them that investing in the SPP will help the business and add real shareholder value.

2. Think BIG picture – Express your vision, what makes the business unique and and why it is exciting. Make sure this is at the forefront of your message. How you will use the capital raised with the SPP also needs to be clearly articulated, and it helps to tie this back to the bigger picture and ambitions of the business. Consult IR/PR and your marketing team. Be aware that often the people running the company are too close to the action to see things from the retail investors perspective.

3. Communicate using as many mediums as possible -Your shareholders will prefer to talk to you in many different places and through many different mediums. Plan in advance and create a strategy using every channel at your disposal, such as posted letters, emails, ASX announcements, social media and phone calls.

4. Keep email and phone numbers of your shareholders up to date. It pays dividends, best practice is to ensure it’s always part of your shareholder management strategy.

5. Use a variety of engagement tactics to ensure your message gets through – publish thematic articles, research notes or special reports, updates from the CEO and consider running shareholder webcasts. Plan to include links to SPP in all ASX announcements.

6. Create a specific SPP landing webpage with all the information your shareholder needs to have confidence in the current company strategy as well as the details of the SPP.

7. Nurture interested investors – investors may need more than one touch point to make the decision to invest. Have a communication plan that includes follow-up phone calls to qualify their interest or answer further questions they may have.

8. If your share price maintains at its offer price it makes it more appealing for existing shareholders to participate at a discounted offer price. Depending on your company an SPP will often create sellers who are looking to participate at a lower offer price. It’s an excellent time to ramp up you efforts to get the message out there, allowing additional advocates of your company to enter the registry at a reasonable price whilst there is additional liquidity.

9. Use the SPP to gather the contact details of your shareholders, an SPP is the perfect method to get investors to update their contact details. We’ve seen companies achieve more than a 50% increase of these contacts by having the right forms in place. These contacts help with future shareholder communications and the next SPP or placement you run!

10. Keep the liquidity going! An SPP gives you lots of reasons to engage with your
shareholders and the investor community. Continue the momentum you gain and keep
them engaged.

A SPP is an accessible way for a listed company to raise capital. With a clear and well structured campaign you can significantly increase the capital raised, attract more engaged longer term investors and significantly improve the shareholder email/phone details you have on your registry.

If you would like to discuss how we could assist you with your next SPP, please click here to request a consultation or call (03) 8080 5795.


Live Webcast: How to run a successful SPP

Wednesday, Feb 13th – 2:00pm (AEDT)

Join us for this special live webcast with Patrick Nelson, MD of Reach Markets to show you exactly how you can run a successful SPP.

Find out:

  1. The tactics that can help to ensure target raise is met quickly
  2. How to nurture investors to ensure participation
  3. How to create additional liquidity

This will be a live and interactive session giving you the opportunity to ask questions directly. Register now to reserve your spot!

How to run a successful SPP Wed, Feb 13th - 2:00pm

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