What is the average discount of a Share Purchase Plan?

Share Purchase Plans (SPPs) are generally, but not always, priced at the lower of:

• the price paid by institutional investors in an accompanying placement; and
• a 2-3% discount to the 5-day volume-weighted average price leading up to the SPP closing date. 

Over the 12-year period from 1 January 2008 to 31 December 2019, the average discount of SPPs amongst the 300 largest listed entities was 9%.