Service Stream Raises $404 Million via Institutional Entitlement Offer and Placement at $2.03 Per Share

Mukul

10 November 2026 12:56 PM AEDT

Service Stream Raises $404 Million via Institutional Entitlement Offer and Placement at $2.03 Per Share

Image Source: Krish Capital Pty Ltd

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Service Stream Limited (ASX:SSM) has completed its institutional entitlement offer and placement, raising approximately $404 million through the issue of approximately 199 million new fully paid ordinary shares at an offer price of $2.03 per share, with proceeds to be used in part to fund the acquisition of Programmed for a purchase price of $975 million.

Key Points

Institutional Entitlement Offer and Placement raised approximately $404 million at $2.03 per new share.
Approximately 199 million new shares to be issued: around 91 million under the Institutional Entitlement Offer raising approximately $186 million, and approximately 108 million under the Placement raising approximately $219 million.
Existing institutional shareholders took up approximately 92.5% of their entitlements, excluding ineligible institutional shareholders.
Settlement is scheduled for Wednesday 18 November 2026, with new shares expected to be allotted and commence trading on Thursday 19 November 2026.
The Retail Entitlement Offer opens Monday 16 November 2026 and closes Friday 27 November 2026.

Institutional Entitlement Offer and Placement Terms

The institutional component forms part of a 1 for 4.9 pro rata accelerated non-renounceable entitlement offer. The offer price was set at $2.03 per new share for both the Institutional Entitlement Offer and the Placement. Approximately 91 million new shares were issued under the Institutional Entitlement Offer, raising approximately $186 million, while approximately 108 million new shares were issued under the Placement, raising approximately $219 million. New shares will rank equally with all existing fully paid ordinary Service Stream shares on issue. Normal trading resumed on an ex-entitlement basis from market open on Tuesday 10 November 2026.

Programmed Acquisition Funding

According to the filing, proceeds from the Institutional Entitlement Offer and Placement will be used to fund, in part, the acquisition of Programmed for a purchase price of $975 million, before adjusting for debt and debt-like items and any purchase price reduction. The filing notes that agreed debt and debt-like items are estimated at $65 million. The purchase price may also be reduced by an amount of up to $25 million through a post-completion adjustment should Programmed not achieve a prescribed EBITDA hurdle for the financial year ending 31 March 2027.

Retail Entitlement Offer Timetable

The Retail Entitlement Offer will open at 9am on Monday 16 November 2026 and close at 5pm on Friday 27 November 2026 (AEDT). Eligible retail shareholders will receive a Retail Information Booklet, to be dispatched on Monday 16 November 2026, setting out eligibility requirements and participation instructions. Results of the Retail Entitlement Offer are scheduled to be announced on Wednesday 2 December 2026, with settlement of new shares under the Retail Entitlement Offer on Thursday 3 December 2026 and allotment on Friday 4 December 2026. Shareholders outside Australia or New Zealand, or in the United States, are ineligible to participate.

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