Santos (STO) had wanted shareholders to tip in $500 million, but in the end had to make do with $201 million, from its share plan (SPP) after making an institutional placement to big investors in December.
Santos raised $1 billion from big shareholders at $4.06 a share and then turned to small holders and offered them shares at $3.94.
Santos described the SPP as giving retail shareholders the opportunity to participate in Santos’s turnaround strategy following the successful completion of the institutional placement”. That issue had the effect of seemingly capping the Santos share price at or just around $4 a share.
The reaction from small shareholders is a bit of a thumbs down to the company and board.
The past couple of years have been rough and the company has raised billions from issues, as well as raising more from selling assets or taking on a big Asian shareholder to help it ride out the great oil price crunch from late 2014 onwards.
The shares are down 1.7% so far this year, but up 23% in the past year.
