scroll

Macquarie’s SPP – any good?

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 20/11/2021

Macquarie’s SPP – any good?

Hi James,

I've just thrown the full 30k into the MQG share purchase plan by BPay, so I could change or cancel it up to 24/11. What do you think? General advice only - of course. Cheers Stuart C

Hi James, Any thoughts on the Macquarie SPP? Thanks Jill

Hi James, thanks as always for your great coverage, I wonder whether you could comment on the attractiveness of the MQG SPP offering at $191.28 (ex 1H22 dividend) seems to be tapping the market at a high point ...but then again MQG does seem to keep powering on. Cheers Don

Answer

Hi Guys,

Last month MQG announced an impressive 1^st half profit of $2.04bn plus a capital raising in to the form of a $1.5bn institutional placement plus a SPP (share purchase plan) the size of which will be determined by the appetite from eligible shareholders. The standouts:

Maximum application of $30,000 and the closing date is 26^th of this month
Shares will be offered at the lower of $191.28 or a 2% discount to the 5-day VWAP prior to the closing date.
These shares will not receive the dividend in H1 of next year.

We see nothing not to like in this offering by MQG although it’s not especially generous in terms of discount implying the stock is in high demand, the only thing to be wary of is what percentage of a portfolio this holding is becoming. NB: We doubt that holders will get anywhere near 30k worth of stock, there is likely to be scale back.

chart

Macquarie Group (MQG)

LAST UPDATED 19/11/2021 16:10

Latest Reports

Weekend report 31/05/2025

Weekend Q&A: As we approach the EOFY, the ASX200 is flirting with its all-time high

The ASX 200 rallied on the final trading day of May, closing up +0.3% for the session, leaving the index just ~2% below its all-time high. Overall, an excellent performance by the Australian bourse, advancing +3.8% for the month, shrugging off the ongoing uncertainty around tariffs and rising long-dated bond yields. However, a more dovish than expected RBA, a strong banking sector, suspicions of overseas buying, and a market caught underweight stocks after their dramatic “V-shaped” recovery from Trump's “Liberation Day” was enough to drive the local market back towards the 8600 area. With pullbacks well supported in one of the most hated bullish advances that we can recall, it makes for a compelling argument that new highs are just around the corner.

Afternoon report 30/05/2025

The Match Out: Sell in May (& go away) not the go this year, ASX gains 3.8%!

The final trading day of the month carried the ASX to a 3.8% gain over the period and now within ~200pts of all-time highs with investors brushing off tariff risk and shifting focus back to fundamentals.