How Race Oncology raised $29.7m in an oversubscribed Share Purchase Plan (SPP).
An ASX-listed biotechnology company that came to InvestorHub to raise sustainable capital from retail through a share purchase plan.
- Industry
- Biotech
- $43.9m
- In bids
- $29.7m
- Raised
- 2,340
- Participating shareholders
Problem
To fund the next stage of clinical trials for its next-generation anti-cancer drug, Zantrene, Race Oncology needed to raise more capital, and wanted to do it sustainably, from its own retail shareholder base rather than through a discounted placement.
Impact
The campaign exceeded expectations, capturing $43.9m of oversubscribed bids from 2,340 participating shareholders within three weeks. Race Oncology raised $29.7m in a heavily oversubscribed Share Purchase Plan, entering 2022 with the funding required to continue the development of Zantrene, and demonstrating the impact of proactive shareholder engagement on capital-raising outcomes.
InvestorHub gave us a deeper understanding of our shareholder base at scale and was able to show us, through data and evidence, that we could raise the required funds solely through a shareholder offer. Their technology made it easier to communicate with our shareholders en masse, answering their questions as well as optimising allocations as the result of oversubscriptions.
Daniel TillettCEO, Race Oncology (ASX:RAC)Step by step
How they did it.
Three moves, in the order Race Oncology made them.
- 1
Measuring capital potential
InvestorHub's ability to measure and model capital-raising potential predicted a reliable $20m raise for Race Oncology via an SPP, the data and evidence the team needed to back a shareholder-only offer.
- 2
Launching the campaign
Partnering with InvestorHub, Race Oncology launched the share purchase plan across November and December 2021, communicating with shareholders en masse and answering their questions throughout.
- 3
Optimising oversubscribed allocations
As bids poured in well beyond expectations, InvestorHub helped optimise allocations in response to the oversubscription, rewarding the shareholders who backed the offer.
The flywheel
Each turn makes the next one easier.
None of these are needle moving by themselves, but together and over time they combine and grow on each other to make each move more and more impactful.
- Attract
- Reach the whole register directly, rather than the twenty holders who take the calls. More of the register hears from you, so more of it can respond.
- Understand
- Every open, read, click and question is a signal about who is actually paying attention, and to what. The register stops being a list of names.
- Engage
- Answer what shareholders actually asked, while they are still asking it. That earns the next open, which is what makes the next turn sharper than this one.
Which is why the wheel doesn’t just keep turning, it gets better at turning. The register you engage this quarter is the register you understand next quarter.