SPC Global Initiates Share Offer to Mitigate Debt Levels

SPC Global, an Australia-based food-and-drinks group, has announced a rights offer to raise A$97.1m (US$69.3m) in a bid to reduce its debt. The company, which went public less than 18 months ago, plans to use the proceeds to improve its financial standing.

According to a stock-exchange filing dated May 22, SPC Global's entitlement offer allows shareholders to purchase one new share for every 0.1993 shares they currently hold. This offer is scheduled to close on June 2.

In a recent investor presentation, company management emphasized that most of the funds will be used to pay down existing borrowings. The move is expected to lower SPC Global's net debt to A$38.7m on a pro-forma basis, down from A$138.7m as of December 31, 2025. The company's net debt-to-equity ratio is projected to decrease to 21% from 165.3%.

For the first half of its financial year, ending December 31, SPC Global reported net sales revenue of A$171.5m, marking a 13.3% decline. Domestic sales also dropped by 6.6% to A$155.6m. Despite these declines, SPC Global's normalized EBITDA was A$13m, significantly higher than the A$7.5m reported in the same period of the previous year. This improvement was attributed to strong performance in the on-the-go product segment and more disciplined retail promotions.

The company also reported a net loss of A$19.6m for the six-month period, which was an improvement over the A$39.7m loss recorded a year earlier.