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The S&P/ASX 200 Index (ASX: XJO) is having yet another day in the red so far this Wednesday. At the time of writing, the ASX 200 is down by 0.83% to 7,188 points. But one ASX company isn’t joining in that malaise. That would be the Regal Investment Fund (ASX: RF1).

Regal shares last traded at a price of $4.47 a share, right where they closed yesterday’s trading session at. And, at least for now, that’s the price they will stay at.

That’s because Regal Investment is currently in a trading halt. The company released an announcement this morning, gazetting the share price freeze. A few minutes later, we found out why.

Regal Investment Fund share price frozen for capital raising

Yes, the Regal Investment Fund share price is halted today because the company has announced a capital raising program. Regal is seeking to raise up to $97.8 million through a share placement. The placement offer is available for all existing shareholders. It will entitle these shareholders to apply for an additional share for every 3 shares already owned.

This 3-for-1 offer will be available at a share price of $3.79. According to the company, this price represents a 15.2% discount to yesterday’s closing Regal Investment Fund share price of $4.47. It also happens to equal this company’s Net Asset Value (NAV), as of 1 October. This offer has been named the ‘general entitlement offer’ by Regal, with the goal of raising up to $65.8 million.

That contrasts to an additional and concurrent share placement program that will be available for “eligible wholesale and institutional investors”. This program will seek to raise an additional $31.9 million.

Regal tells us that this new money will be earmarked in the following way:

The new capital raised under the Offer will be allocated to existing Regal strategies in line with the Fund’s investment objective, with an aim of further diversifying RF1’s portfolio across private and public alternative investments

About the company

The Regal Investment Fund is an ASX-listed investment trust. According to the company, it seeks to “provide investors with exposure to a selection of alternative investment strategies with the aim of producing attractive risk-adjusted absolute returns over a period of more than five years with limited correlation to equity markets”.

It has managed to book some impressive returns since its inception in June 2019. The Regal Investment Fund has returned an average performance of 39.1% per annum since its inception date, including a return of 45.1% over the past 12 months (to 30 September).

The post Why is the Regal Investment (ASX:RF1) share price halted right now? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to sell today
• CBA (ASX:CBA) share price slides as bank is awarded for rapid cloud migration
• Here’s why the Austal (ASX:ASB) share price is charging higher today
• Here’s why Square stock pulled back 10% in September
• Why Afterpay, Austal, Baby Bunting, & Nick Scali shares are storming higher

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Commonwealth Bank of Australia (ASX: CBA) share price is sliding today, down 2.62% to $102.74 per share.

It’s not just the CBA share price in the red, though.

The S&P/ASX 200 Index (ASX: XJO) gave up its earlier gains around lunchtime and is currently down 0.69%.

The other big 4 banks are all losing ground today as well. The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price, as one example, is down 1.08%.

That’s today’s share movements.

Moving ahead, in news that’s unlikely to have any material impact on the CBA share price today, the bank this morning reported on the record pace of its migration to the cloud.

CommBank embraces cloud technology

CommBank reported that its rapid pace of digital transformation and adoption of cloud technology saw it take home the 2021 Digital Transformation award at the VMware Customer Excellence Awards.

The bank said it has now migrated more than 2,300 virtual machines to the public cloud. According to the release, it’s now operating the largest “VMWare cloud environment” across all of Asia–Pacific and Japan.

Commenting on the transition to cloud technology, Mark Vudrag, CommBank’s executive general manager of global technology services, said:

We know digital engagement is a key differentiator for us to remain connected and relevant for our customers. We’re always looking for ways to use the latest technology to modernise our systems and our thinking so we can truly re-imagine our products and services for our customers.

Vudrag added that, “At every step we implemented lessons learned and continued to make sure our cloud operations always remain safe, sound and secure and that we’re building a fit for purpose solution for the bank of tomorrow.”

CBA share price snapshot

Despite sliding today, the CBA share price has been a strong performer in 2021, up 22% year to date. By comparison, the ASX 200 is up 7.65% year to date.

Over the past month, CBA shares have gained a slender 0.59%, compared to a 4.45% loss for the ASX 200.

The post CBA (ASX:CBA) share price slides as bank is awarded for rapid cloud migration appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares fall flat amid flurry of new regulations
• Travel stocks soar. Hopes for a new COVID treatment. Evergrande drags on. Scott Phillips on Nine’s Late News
• CBA (ASX:CBA) share price in focus amid Aussie banking first
• Why the ANZ (ASX:ANZ) share price has lagged the ASX 200
• CBA (ASX:CBA) share price jumps following $6 bn share buy back completion

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Austal Limited (ASX: ASB) share price has been a strong performer on Wednesday.

In afternoon trade, the shipbuilder’s shares are up over 4% to $1.95.

Why is the Austal share price charging higher?

The catalyst for the rise in the Austal share price today has been the release of an announcement.

According to the release, the company’s US business has been awarded its first steel vessel construction contract by the United States Navy.

The US Navy contract is worth a total of US$145 million (~A$198.5 million) and is for the construction of two Towing, Salvage, and Rescue ships (T-ATS 11 and 12).

The release also notes that the contract includes options for up to three additional T-ATS ships. If these options were exercised, it would bring the total cumulative value of the contract to US$385 million (~A$528.6 million).

This contract award follows the initial award of a US$3.6 million contract by the United States Navy for the functional design of the Navajo-class T-ATS vessels.

Management notes that the T-ATS contract is the first steel ship construction program awarded by the United States Navy to Austal USA. It will also be the first program to be delivered in the new steel shipbuilding facilities, which are nearing completion at the shipyard in Mobile, Alabama.

The Navajo-class T-ATS has ocean-going tug, salvage, and rescue capabilities and a multi-mission common hull platform, capable of towing heavy ships. These ships will be able to support the US Navy in a variety of missions. This includes oil spill response, humanitarian assistance, and wide area search and surveillance.

“An exciting milestone”

Austal’s Chief Executive Officer, Paddy Gregg, was very pleased with the news.

He believes the contract is an exciting milestone in the history of the company and a great demonstration of its new steel shipbuilding capabilities in the United States.

Mr Gregg added: “This is great news for Austal USA as they enter a new era of steel shipbuilding in the United States, supporting the Navy’s requirements for steel ships.”

Positively for the company, and potentially the Austal share price, this is just one of several steel shipbuilding programs Austal USA is pursuing as it diversifies its capabilities. Shareholders will no doubt be hoping the company has similar success with those submissions.

The post Here’s why the Austal (ASX:ASB) share price is charging higher today appeared first on The Motley Fool Australia.

More reading

• Why Afterpay, Austal, Baby Bunting, & Nick Scali shares are storming higher
• Why the Austal (ASX:ASB) share price is lifting today
• Dividends galore! 10 ASX shares trading ex-dividend on Wednesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Austal Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of Square (NYSE: SQ) pulled back 10.5% in September, according to data provided by S&P Global Market Intelligence. I believe the drop can be attributed to general market volatility; the S&P 500 was down almost 5% for the month. I don’t believe the drop resulted from a problem with the business because everything Square announced in September was positive. 

So what

During September, Square didn’t update financial results but it did make some product announcements. For example, the company made progress in its international expansion plans. On Sept. 16 it announced small businesses in Spain could get early access to its suite of products launching there. And on Sept. 21 it announced it had officially launched in France following success with an early access program like the one it has in Spain.

Outside of Europe, Square is hopping on consumer trends in Canada. A Square survey reports that 80% of Canadians are committed to buying from local merchants more frequently and 72% believe cashless solutions are important going forward. To help empower small local businesses to offer these cashless transactions, the company launched Square Register on Sept. 8. Register isn’t a piece of hardware only. The company’s solutions also include software to help manage these digital transactions. 

Square also made an announcement for its U.S. business in September. The company has partnered with popular social media app TikTok, allowing creators to merge their TikTok accounts with an online Square store. As a result, TikTok content creators can conveniently drive traffic from their videos to their online stores. 

September returns for Square stock compared to the S&P 500. SQ data by YCharts

Now what

Square stock has continued falling along with the entire stock market in October and now sits roughly 20% below its all-time high. Sometimes stocks fall because of poor business execution and therefore those aren’t good buying opportunities. By contrast, Square stock has fallen for no fault of its own. This kind of situation can be a good buying opportunity. 

Of course, the most important thing is not how much shares of Square have fallen. Rather, the most important thing is what Square’s business will do over the next three, five, or 10 years. Generally speaking, I believe that financial technology will only become more important over the long term, positioning a fintech stock like Square very well. If Square stock wasn’t on your radar before, I believe it should be after September’s pullback. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s why Square stock pulled back 10% in September appeared first on The Motley Fool Australia.

More reading

• Why is the Afterpay (ASX:APT) share price plunging 5% today?
• Why did the Afterpay (ASX:APT) share price have such a bad month in September?
• Square slumps 5%. How could this impact the Afterpay (ASX:APT) share price today?
• Why is the Afterpay (ASX:APT) share price trailing Zip on Thursday
• Square slides 5%. What does this mean for the Afterpay (ASX:APT) share price?

Jon Quast owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Square. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is tumbling lower. At the time of writing, the benchmark index is down 0.5% to 7,210.7 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price is up 3.5% to $117.49. This follows a strong night on Wall Street which saw the Square share price rebound with a gain of 4.3%. As Square is acquiring Afterpay in an-scrip deal, the value of the takeover rises and falls with the Square share price.

Austal Limited (ASX: ASB)

The Austal share price is up over 4% to $1.95. This follows news that the shipbuilder has been awarded its first steel vessel construction contract by the United States Navy. According to the release, the US$145 million (~A$198.5 million) contract is to build two Towing, Salvage, and Rescue ships.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is up 5% to $5.69. Investors have been bidding this baby products retailer’s shares higher today following a bullish broker note out of Morgans. According to the note, the broker has upgraded the company’s shares to an add rating with a $6.20 price target. This follows the release of the company’s trading update on Tuesday at its annual general meeting.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is up 5% to $12.92. This morning Citi retained its buy rating and lifted its price target on the furniture retailer’s shares to $16.80. It was pleased with the company’s acquisition of Plush for $103 million. The broker described Plush and Nick Scali as a compatible low risk match.

The post Why Afterpay, Austal, Baby Bunting, & Nick Scali shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Why the Afterpay Ltd (ASX:APT) share price is bouncing back on Wednesday
• ASX 200 (ASX:XJO) midday update: A2 Milk class action, tech shares rebound
• Why this broker just upgraded the Baby Bunting (ASX:BBN) share price to buy
• Why is the Afterpay (ASX:APT) share price plunging 5% today?
• Why De Grey Mining, Gold Road, Nick Scali, & Redbubble shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO and Austal Limited. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Baby Bunting. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has been struggling over the last 8 weeks

It has dipped despite the regional bank releasing only seemingly positive news to the market.

Eight weeks ago, the Bendigo Bank share price finished its day’s trade at $10.97.

At the time of writing, the bank’s stock is trading for $9.28, 0.96% lower than its previous close and 15.4% lower than it was 8 weeks ago.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 4.9% over the last 8 weeks.

Let’s take a look at what’s been driving Bendigo Bank’s shares lower lately.

Bendigo Bank’s stock struggles

The Bendigo Bank share price has been struggling on the ASX in recent weeks.

That’s despite the bank posting strong results for financial year 2021 and announcing news of a $116 million acquisition.

On 16 August, the bank released its annual earnings report, detailing a seemingly strong 12 months ended 30 June 2021.

The bank’s statutory net profit after tax increased by 172% on that of the prior financial year while its cash earnings after tax were up 51.5%. It also posted a 50 cent fully franked dividend.

At the same time, Bendigo Bank announced it was to acquire Ferocia, a Melbourne-based fintech, for $116 million.

Ferocia is one of the collaborative developers of Up, Australia’s highest-rated banking app.

Unfortunately for Bendigo Bank, the market reacted poorly to the news it released on 16 August. The Bendigo Bank share price fell 9.9% on the back of the announcements.

Since then, its drooped another 7% despite silence from the bank.

Bendigo Bank share price snapshot

The poor performance over the last few weeks has plunged Bendigo Bank’s stock back into the red on the ASX.

The bank’s share price is currently 0.54% lower than it was at the start of 2021. However, it is 47% higher than it was this time last year.

The post Why has the Bendigo Bank (ASX:BEN) share price fallen 15% in 8 weeks? appeared first on The Motley Fool Australia.

More reading

• The ASX 200 banks may be in danger as half of mortgage-stressed households have “borrowed to the hilt”
• 5 things to watch on the ASX 200 on Thursday
• Confirmed: APRA is planning action on home loans, ASX 200 banks drop
• Bendigo Bank (ASX:BEN) share price slips despite recycling partnership
• Climbing mortgage stress: Are the CBA, ANZ, NAB and Westpac share prices in danger?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Magnis Energy Technologies Ltd (ASX: MNS) share price is climbing in afternoon trade today and is now changing hands at 31 cents each.

At one point today, Magnis’ shares surged 7% to an intraday high of 33 cents, before levelling back out to the current market price.

Magnis shares have been on the move since the company released a response letter to the ASX just before the opening of trade today.

Here’s what we know.

What did Magnis Energy release today?

It appears that on 22 September the ASX compliance department flagged a couple of takeouts from recent announcements Magnis has made and wrote a “please explain” letter.

Specifically, the ASX mentions updates made in May and September, that list Indian utilities company Sukh Energy as a key stakeholder.

Back in May, the company advised it had secured an estimated US$655 million of orders in binding offtakes, however did not disclose the names of any counter-parties in the orders.

Then speculation regarding Sukh Energy’s financial health and balance sheet began to place doubt on Magnis’ dealings with the Indian energy giant.

This came after a release in September that advised of a 5-year, US$160 million offtake agreement with electric mobility manufacturer Omega Seiki.

As such the ASX asked Magnis to front up and wave away the cloudiness surrounding these issues, to which it has done today.

The company explained that it is well aware of Sukh Energy’s business operations, its key customers, and its financial health.

Curiously, the ASX asked Magnis if it were aware that Sukh Energy “has no revenues and assets of $70,000, as lodged with the Indian corporate regulator?”.

Magnis stated in response that, “Yes, to the best of the company’s knowledge, the financial information referred to (in the question) is correct”.

That means that Magnis has signed deals worth $1.2 billion with a company that has no revenues and a small asset base, so it appears written from the ASX’s letter.

Of the US$655 million in offtake orders announced earlier this year, Magnis expects that around US$243 million will be attributable to Sukh Energy.

That’s 37% of all the sales exposed to the one customer and/or its subsidiaries. Magnis Energy doesn’t appear to be worried though and is confident all parties will maintain solvency just fine.

Bringing it all together in conclusion to the ASX’s cross-examination, Magnis said:

Based on the Company’s understanding (as set out above) and the matters referred to above, Magnis is confident that Sukh Energy has, or will have at the relevant time, the financial resources necessary to satisfy its obligations under the iM3NY off-take arrangements.

Time will tell to see if more unfolds from this story.

Magnis Energy share price snapshot

The Magnis Energy share price has climbed 55% this year to date, bringing its 12-month return also to 55%.

Its been on the downward slope this past month, having slumped 15% into the red, which has carried through to this past week.

Despite this, Magnis Energy shares are ahead of the S&P/ASX 200 index (ASX: XJO)’s return of about 25% in the last year.

The post Here’s why the Magnis Energy (ASX:MNS) share price is leaping 7% today appeared first on The Motley Fool Australia.

More reading

• Magnis Energy (ASX:MNS) share price lifts after FY21 annual report release

The author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It certainly has been a difficult few months for the Fortescue Metals Group Limited (ASX: FMG) share price.

Since peaking at $26.58 in late July, the iron ore producer’s shares have fallen 47% to $14.14.

Where next for the Fortescue share price?

Unfortunately, one leading broker doesn’t believe the Fortescue share price has bottomed just yet.

According to a note out of Goldman Sachs this morning, its analysts have retained their sell rating and cut their price target down to $11.40.

Based on the current Fortescue share price, this implies potential downside of almost 20% over the next 12 months.

What did the broker say?

Goldman believes high grade iron ore miners such as Rio Tinto Limited (ASX: RIO) have been sold off and are now in the buy zone. It has a buy rating and $123.40 price target on Rio Tinto’s shares.

However, it isn’t anywhere near as positive on low grade iron ore miners. This is due to its belief that the low grade discount will widen as steel producers favour higher grade ore.

Goldman explained: “Widening of low grade 58% Fe product realisations: we see spot realisations for FMG’s 58% product currently at c. 68-70% of the 62% Index (vs. 84% in the June Q) with likely further headwinds with ongoing China steel production cuts in 4Q21.”

In addition, the broker doesn’t see enough value in the Fortescue share price at this level despite its pullback.

Goldman highlights that its shares are trading at ~1.5x net asset value (NAV) versus Rio Tinto’s shares at 0.84x NAV.

The broker summarised: “Our FY22/FY23 EPS estimates are down 51%/55% on our lower iron ore price forecasts and higher bulk freight forecasts and after lowering our 58% Fe price realisations (of the 62% Fe Index) for FY22 to 74% (from 77%). Our NAV is down 21% to A$9.66/sh (from A$12.25/sh) and our 12-month TP is down 37% to A$11.4/sh (from A$18.0/sh).”

All in all, there could be more red days ahead for the Fortescue share price if Goldman’s predictions are accurate.

The post Broker warns Fortescue (ASX:FMG) share price could sink a further 20% appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price at 16 month lows. What’s next for iron ore?
• Fortescue (ASX:FMG) share price slides to fresh year-to-date low
• Why did the Fortescue (ASX:FMG) share price have such a lousy month in September?
• These were the 5 worst performing ASX shares in September
• Top brokers name 3 ASX shares to sell next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Hyperion Metals Ltd (ASX: HYM) share price is soaring 11% in early afternoon trade.

We take a look at the latest critical minerals announcement from the ASX resource explorer that looks to be stoking investor interest today.

What critical minerals update was announced?

Hyperion Metals’ share price is rocketing after the company reported on its maiden Mineral Resource Estimate (MRE) at its Titan Project in the US state of Tennessee.

According to the announcement, the MRE indicates that Titan is the largest rare earth minerals, titanium and zircon project in the United States.

The MRE is based on 107 drill holes totalling 4,101 meters. Another 109 completed drill holes totalling 3,566 meters are still being analysed.

The results the company highlighted for the MRE from the existing results at the Titan Project include:

• Total Mineral Resource of 431Mt @ 2.2% Total Heavy Minerals (THM), containing 9.5Mt THM at a 0.4% cut-off with 241Mt (56%) classified in the Indicated resource category;
• Includes high grade core of 195Mt @ 3.7% THM, containing 7.1Mt THM at a 2.0% cut-off;
• High value THM assemblage of 12% zircon, 10% rutile, 40% ilmenite and 2% Rare Earth Elements (REE) concentrate with an excellent ratio of heavy and light rare earths

Hyperion said the high-grade results, along with access to existing infrastructure in a low-cost jurisdiction, show the potential to build a “world class”, low carbon critical mineral business in the US. Tennessee, it said, has been confirmed as an untapped critical mineral province.

Commenting on the results, Hyperion’s CEO Anastasios Arima said:

Hyperion’s mission is to sustainably re-shore the production of American critical minerals and metals and this maiden MRE is a crucial step towards this goal.

The maiden MRE has immediately established the Titan Project as a major, untapped potential source of critical minerals rich in titanium, zircon and heavy and light rare earths. The combination of scale and grade of these high value, critical minerals — in a low risk, low cost and low tax jurisdiction — has the potential to drive significant value creation.

Hyperion Metals share price snapshot

The Hyperion Metals share price has been on a tear this year, up 336% in 2021. By comparison the All Ordinaries Index (ASX: XAO) is up 8% year-to-date.

Over the past month, however, Hyperion’s shares are down 9%.

The post Here’s why the Hyperion Metals (ASX:HYM) share price is soaring 11% today appeared first on The Motley Fool Australia.

More reading

• Broker warns Fortescue (ASX:FMG) share price could sink a further 20%
• Here’s why the Aussie Broadband (ASX:ABB) share price is lifting today
• Why the Coda Minerals (ASX:COD) share price is surging 16% today
• Here’s why the Swoop (ASX:SWP) share price is up 11% on Wednesday
• Technology shares lead the battle to lift the ASX 200 on Wednesday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Aussie Broadband Ltd (ASX: ABB) share price is climbing during Wednesday mid-afternoon. This comes as the broadband company provided an update on its recent Share Purchase Plan (SPP).

At the time of writing, Aussie Broadband shares are up 2.24% to $5.02. It is worth noting that its shares reached an all-time high of $5.22 on Monday, before slightly edging lower.

What did Aussie Broadband announce?

In today’s statement, Aussie Broadband advised it has successfully completed its SPP.

The heavily subscribed SPP received strong support from retail investors, exceeding the original offer to raise $10 million.

Aussie Broadband stated that due to the high demand, it has decided to increase the SPP offer to $20 million. While eligible shareholders will receive a larger portion of shares, the company noted that a significant scale back is required.

As such, a pro rata basis has been applied to each parcel of shares. A minimum allocation of 125 shares will be distributed to shareholders who requested more than $2,500 worth of Aussie Broadband shares. The amount increases up to 1,350 shares for those who applied for more than $30,000 worth of shares in the SPP.

Aussie Broadband managing director Phillip Britt, touched on the closing SPP, commenting:

Despite doubling the size of the SPP raise, we know the level of scale back will be disappointing for many. We hope to repay the faith our shareholders have shown us by continuing to deliver value to them as we execute our strategy.

The newly created shares will be allotted on 8 October, and refunds are expected to be processed around 11 October.

Aussie Broadband share price review

A strong couple of months for the company has led Aussie Broadband shares to accelerate 150% in 2021. In particular, its shares surged at the beginning of August buoyed by a positive trading update.

Since then, Aussie Broadband shares haven’t looked back.

Based on today’s price, Aussie Broadband has a market capitalisation of roughly $1.1 billion, and approximately 218.8 million shares outstanding.

The post Here’s why the Aussie Broadband (ASX:ABB) share price is lifting today appeared first on The Motley Fool Australia.

More reading

• 4 ASX shares looking ripe for the picking now
• Aussie Broadband (ASX:ABB) share price hits new high, up 27% this month
• Aussie Broadband (ASX:ABB) share price lifts on share purchase plan
• ASX 200 falls, Macquarie jumps, Aussie Broadband climbs
• Aussie Broadband (ASX:ABB) share price edges higher on capital raise update

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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