Launch of a ~$110 million Entitlement Offer to Accelerate Growth

05 Sep 2022

Following the successful merger completion and the release of its inaugural interim results for the six months ended 30 June 2022, Regal Partners sees an opportunity to accelerate the execution of its diversified growth strategy and ambition to be a leading provider of alternative investment strategies, while also increasing the free float and shareholder base of Regal Partners. 


  • Regal Partners is announcing the launch of a ~$110 million entitlement offer

  • The Offer Price of $2.60 per new share represents:
    • a discount of 8.5% to RPL’s closing price on 2 September 2022 of $2.84;
    • a discount of 11.4% to the five-day VWAP1 of $2.94; and
    • a discount of 7.1% to the theoretical ex-rights price of $2.80 (“TERP”)2

  • The company is seeking to issue up to 42.3 million new shares, representing ~20% of the total shares currently on issue

  • Proceeds from the entitlement offer are expected to build surplus capital for the combined business and provide balance sheet capacity to help accelerate multiple growth initiatives

  • Funds raised are expected to be used as follows:
    • Continuing to grow and scale existing strategies, and seed new strategies, such as the Regal Private Credit Opportunities Fund3 and the Resources Royalties Strategy;
    • Further co-investment alongside wholesale investors into new and existing funds and strategies;
    • Accelerating growth capabilities in distribution, marketing and technology; and
    • Costs associated with the entitlement offer, which are expected to be ~$3 million
    • In addition, increased balance sheet liquidity and flexibility would provide Regal Partners with optionality for inorganic growth opportunities should they make sense in diversifying Regal Partners’ revenue base and leveraging the operating platform

  • Philip King and the Regal Foundation are supportive of the entitlement offer and recognise the expected benefits for all shareholders in broadening the register to assist with liquidity and enhancing the free float.

  • Philip King and the Regal Foundation have indicated they will not take up their entitlements in the entitlement offer, in order to assist Regal Partners to meet the demand from new and existing shareholders in RPL in the institutional entitlement offer. The Regal Foundation has indicated that it may decide to bid for, and as a result may be allocated shares in the case of a placement of any shortfall under the retail entitlement offer. Any participation by interests associated with the Regal Foundation will be limited to ensure that the relevant interest of the Regal Foundation does not exceed 19.9% of the Company’s issued share capital. Other major shareholders are being actively engaged in relation to their intended participation in the entitlement offer.

Read the announcement here

View the presentation here

1 Based on the volume weighted average price five business days prior to last close as of 2 September 2022.

2 The Theoretical Ex-Rights Price (“TERP”) is the theoretical price at which RPL shares should trade immediately following the ex-date for the Entitlement Offer. TERP is calculated by reference to RPL’s closing price of $2.84 on 2 September 2022, being the last trading day prior to the announcement of the Entitlement Offer. TERP is a theoretical calculation only and the actual price at which RPL shares trade immediately after the ex-date of the Entitlement Offer will depend on many factors and may not be equal to TERP.
3 Regal Private Credit Opportunities Fund expected to launch in 2H22.