SPC Global has launched a rights issue to cut its debt and shore up the balance sheet, offering existing shareholders a chance to buy new shares as it looks to turn tighter finances into breathing room for the business.
SPC Global, which listed less than 18 months ago, is pushing ahead with an entitlement offer after a rocky start in the public markets. Management says the move is squarely about strengthening finances so the company can focus on running its canned foods, dairy and juice businesses without the overhang of heavy borrowings.
The company is aiming to raise AS$97.1m before costs through the share issue, with the offer open to current shareholders who can buy one new share for every 0.1993 they already own. The timetable is short: the entitlement offer is scheduled to close on 2 June, so investors have a narrow window to decide.
SPC’s management framed the raising as a simple balance-sheet fix. “Proceeds from the equity raising will be used to strengthen SPC Global’s balance sheet, providing further financial flexibility and headroom to support the working capital requirements of SPC Global’s business strategy,” the presentation read.
The plan is blunt and practical: use most of the money to pay down senior bank debt and put leverage back into a safer range. “The majority of the proceeds will be used to reduce the company’s outstanding senior bank debt to a level that reflects a more appropriate leverage position.”
If the equity raise goes as described, SPC’s pro-forma net debt based on its 31 December 2025 position would fall to A$38.7m from A$138.7m. That dramatic drop would bring pro-forma net debt to equity down to about 21%, a much more conventional footing compared with the 165.3% figure before the raising.
Turning to trading, the first half of SPC Global’s financial year, which ran to the end of December, showed the group facing softer sales. Net revenue was A$171.5m, down 13.3%, with domestic sales falling 6.6% to A$155.6m as trading conditions in retail remained patchy.
Despite the top-line dip, SPC narrowed its headline losses. The group posted a net loss of A$19.6m for the period, an improvement from a A$39.7m loss a year earlier, while normalised EBITDA came in at A$13m. Management said the EBITDA uplift reflected stronger performance from on-the-go products and a more disciplined approach to promotions in retail.
The rights issue is a straightforward bet on reducing financing stress so SPC can execute on product and sales plans without being hamstrung by debt. Investors will be weighing whether the capital raise restores confidence, and whether the business can convert the improved leverage into steady, profitable growth now that the balance sheet is being cleaned up.
