Interested in the $750m CSL (ASX:CSL) share purchase plan? Here are the details

Here's what you need to know about CSL's share purchase plan

| More on:
Scientists in a laboratory look at a computer screen with anticipation on their faces representing a potential change in the performance of ASX biotech shares in FY23

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The much anticipated CSL Limited (ASX: CSL) share purchase plan (SPP) is officially opening today as the company attempts to raise another $750 million for its acquisition of Vifor Pharma.

The Australian biotech company is spending $16.4 billion to take over the Swiss renal disease and iron deficiency-focused giant.

At the time of writing, the CSL share price is $281.43, 2.8% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up today, having gained 0.35%.

Without further ado, here are all the details on CSL's massive SPP.

CSL share price gains amid SPP opening

CSL is raising cash through an SPP that could see new securities in the company on offer for $273 – or less – each.

The company stamped the $273 price tag on its shares during last week's $6.3 billion placement. It also represents about a 3% discount on the current CSL share price.

Though, if the company's share price falls between now and 7 February – when the SPP is expected to close – the new shares will be priced at a 2% discount to CSL's 5-day volume-weighted average price.

Those who held CSL shares as of 13 December may be eligible to apply for between $2,500 and $30,000 worth of new shares. Doing so will allow them to dodge broker and transaction costs.

However, CSL might choose to scale back its offer. If it does, it will make sure the scaled-back amount will see those who applied for new shares at least retaining their percentage shareholding in the company.

It also retains the right to extend or close the SPP early without notice.

The new shares are expected to be issued on 14 February and to begin trading on the ASX the following day.

The plan is only open to Australian and New Zealand shareholders who are outside of the United States.

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. owns and has recommended CSL Ltd. 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.

More on Capital Raising

A man slumps crankily over his morning coffee as it pours with rain outside.
Gold

Why is this ASX gold share crashing 22% today?

Let's find out why this gold miner is down in the dumps on Tuesday.

Read more »

Man with his hand out, symbolising a trading halt.
Technology Shares

Why is the Appen share price frozen today?

This high-flying AI stock has requested a trading halt this morning.

Read more »

A man slumps crankily over his morning coffee as it pours with rain outside.
Capital Raising

Guess which ASX 300 copper stock is crashing 12% today

Let's see what is causing this stock to sink deep into the red.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Capital Raising

Why is this ASX 300 stock crashing 18% today?

Let's see what is making investors hit the sell button today.

Read more »

A man holds his head in his hands, despairing at the bad result he's reading on his computer.
Healthcare Shares

Why is this ASX All Ords stock sinking 14% on Friday?

Let's see why investors hitting the sell button today.

Read more »

Data Centre Technology
Capital Raising

NextDC share price drops on $750m capital injection for Asian expansion

The data centre operator is raising funds to support its expansion.

Read more »

Kid stacking coins from the jar.
Capital Raising

This ASX 300 stock is rising after completing its next step for Canadian growth

Expanding in Canada could be a patently good idea.

Read more »

Successful group of people applauding in a business meeting and looking very happy.
Capital Raising

Guess which ASX All Ords stock is leaping 9% after raising $60 million

This fast-growing company is maintaining a lean balance sheet while making an accretive acquisition.

Read more »