The SPP raising is to provide "additional balance sheet flexibility" (The Encuentra purchase was fully funded by the institutional placement).
So, participating in the SPP is really a "bet" that FDV will use the funds wisely at some point in the future.
In fairness, FDV has readily attracted institutional support at the same share price as for the SPP, and the share price has not fallen below the SPP price. This outcome is a vote of confidence in FDV by the institutions/wider market.
Also, FDV has successfully grown the business/SP over the last few years.
While you could argue that there is not much financial advantage in participating in the SPP (as opposed to buying on the market), the SPP money will go to the company, to help fund acquisitions (and it seems to have a "pipeline" of these).
On balance, I think it is worth participating in the SPP.
FDV Price at posting:
$1.53 Sentiment: Buy Disclosure: Held
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