Harvesting the discount from Share Purchase Plans
The COVID-19 pandemic has caused a wave of discounted capital raisings with ~$53 billion of discounted new shares issued in the last 12 months.
Share Purchase Plans (SPPs) allow individual shareholders to apply for up to $30,000 in shares at the same discounted price paid by institutions. In the 12 months to 31 December, in-the-money SPPs were issued at an average 10% discount to the ASX closing price on the SPP closing date. But, you must be a shareholder before the SPP is announced.
SPP HarvesterTM gives you access to SPPs by buying you 1-share in 300 of the largest, liquid, operating companies listed on ASX. It will identify and apply for in-the-money SPPs and automatically sell the new securities, efficiently recycling your capital into the next SPP. This automatically harvests the discount for SPPs, with minimum capital outlay, low establishment costs and minimal administration.