"The Northern Star Board has proceeded with the originally...

"The Northern Star Board has proceeded with the originally targeted cap of A$50 million and will scale back
applications using the same allocation methodology used in the Placement."

It is saying the scale back will use the same methodology as the original placement, not the institutional placement. The instos did not get a 14% pro rata scale back, and NST have said nothing to imply that they did. Take a bit more time and read the announcement properly.

If there is a 14% scale back on the SPP it should be 14% of the original allocation. It should have nothing to do with original shareholding as this would not be the same methodology used for the placement and would mean NST has falsely informed shareholders. This is very unlikely.