SPC Global Holdings (ASX: SPG) has launched a fully underwritten equity raising of approximately $100 million to reduce net debt, strengthen liquidity, and support execution of its business strategy.
The Australian food and beverage manufacturer will raise approximately $2.9m through a fully underwritten placement and approximately $97.1m through a fully underwritten pro rata renounceable entitlement offer.
Proceeds will be used to reduce net debt, support working capital, and cover costs associated with the raising.
The raising is expected to reduce SPC Global’s net leverage ratio from 3.9 times to 1.1 times on a pro forma basis as at 31 December 2025, and leave the group better funded to pursue its business strategy.
The transaction follows more than a full year of operations as a combined group after SPC, The Original Beverage Co, Nature One, and Natural Ingredients came together in December 2024.
Transformation to Execution
SPC Global said the combined group had moved from transformation to execution over the past 12 months, pointing to improving margins, a favourable channel mix, international expansion progress, and manufacturing and supply chain initiatives.
The company expects interest expense associated with banking facilities to fall from approximately $15m in financial year 2026 (FY26) to an estimated $4.5m to $5m per annum after the raising.
“Today’s equity raising announcement marks an important step in strengthening SPC Global’s balance sheet and positioning the business for its next phase of execution,” managing director Robert Iervasi said.
“Resetting the balance sheet at this point in time reduces leverage, strengthens liquidity, and provides a clear focus for laser sharp execution in market,” he said.
“This transaction positions us to continue investing in Australian manufacturing, our people, and our brands, while maintaining disciplined capital management and a clear focus on long-term value creation.”
Placement and Entitlement Offer
SPC Global will issue approximately 1 billion new fully paid ordinary shares under the equity raising, while the placement will issue approximately 29m new shares to new and existing institutional and sophisticated investors.
The entitlement offer will invite eligible shareholders to subscribe for one new share for every 0.1993 shares held , with all new shares under the raising to be issued at $0.10 per share and rank equally with existing fully paid ordinary shares from issue.
The $0.10 offer price represents a 71% discount to SPC Global’s last traded price of $0.345 on 4 May 2026, and a 69.7% discount to the 10-day volume-weighted average price of $0.330 per share.
Mr Iervasi has indicated he intends to take up his full entitlement under the entitlement offer.
Chair Andrew Reitzer has committed to subscribe for $100,000 of new shares on the same terms as the placement, subject to shareholder approval at the company’s 2026 annual general meeting.
