Most Share Purchase Plans (SPPs) place a cap on the total securities that will be issued under the SPP. If an SPP is oversubscribed, the entity may upsize the SPP, or scale-back applications.
Since 1 Jan 2019, in more than two thirds of SPPs, investors have received 100% of their application. Even though an SPP may be in-the-money, it may be undersubscribed due to shareholder apathy, lack of funds, oversight, or the administration involved. In this case, you will receive an allocation equal to your application.
If SPPs are scaled back, it is typically prorated on application size or existing shareholding and excess application funds are refunded to investors. In this instance, you will be allocated less than your application, and the amount that you are allocated will depend on the total value of applications received and the company’s scale-back policy.