Discl: Held IRL 10.31% and in SM

@GazD, many thanks for flagging this. I found the 12 minute CAT Acquisition segment very insightful from a culture/mindset perspective.

KEY TAKEAWAYS

• In its own right, none of these are earth-shattering really, but it is always good to hear them clearly articulated, more so by someone like Adir who presided over CAT's previous troubles, and its subsequent resurrection from near-death.
• It provided good positive, and more importantly, CONSISTENT, insights on how CAT as an organisation appears to be in a very good, aligned space - Board and Will, Will and his team
• How CAT categorises acquisitions - Pillars of Growth vs Bolt-Ons-to-Growth-Pillars, and the sorts of founder-led businesses that CAT acquires
• Insights on Adir’s operating style (relationship-centric, non-transactional) and how he thinks about acquisitions, shareholders, dilution - he has clearly learnt from the past CAT troubles

I was previously sitting on the fence with the SPP. But having listened to Adir’s mindset on this podcast, I am now likely to participate to partially replace/replace my previously sold down holdings - having exited at around ~$7.25, I will be on top just from the discount. 

The things that has swayed me is that (1) I want to be part of the “high quality Tier-1, long-term investors” that CAT allocated stock to (2) Adir’s mindset around acquisitions and shareholder impacts and the strong alignment between Board and Management further reduces the risk of CAT doing something stupid that will destroy shareholder value from hereon.

INTERESTING POINTS DURING THE PODCAST

Pillars Of Growth vs Bolt-On’s

• Adir explained how in CAT, they think of acquisitions in terms of “Pillars of Growth” and “Bolt-On’s
• Current Pillars of Growth (1) P&H - that's the wearables space (2) Tactics - that's the video space - Scouting and Recruitment is seen as a 3rd Pillar of Growth
• This is contrasted with Perch, which CAT saw as a bolt-on to the P&H Growth Pillar, not a Pillar in itself
• This is a good framework to assess future CAT acquisitions

Mindset of Founders That CAT Finds/Likes

• “The best founders not only want to make money, but they want to nail the mission they are on - IMPECT founders want to be the best global provider in the space that they operate in and believed that they can realistically achieve this via CAT"
• When these founder-led business are acquire by CAT, they are actually “rolling them into CAT and the founders stay and remain an important part of the CAT business”
• CAT has a good track record of finding founder-led businesses like these

Adil’s Mindset During the Acquisition

• Adir describes himself as a “non-transactional person and believes in relationships”
• Do not want to dilute existing shareholders

The IMPECT Deal

• Will did a great job aligning the Board and the investors on the strategy pillars - the Board was already aligned 12-18 months ago, just waiting to find the right company to buy, which Will found
• Was many times legitimately oversubscribed
• With being an ASX200 company, CAT had much more control over its destiny in terms of how it wanted to allocate the stock
• Principles for distribution of Stock during the Capital Raise
• All existing shareholders that believe in us should get stock
• Only give stock to long-only funds - did not want to give stocks to short funds who could use any stock allocation to cover existing short positions
• Only want high-quality, Tier-1, long term investors

Yea agree with all this @jcmleng and I too sold a little off the top at a similar price to you but I’m not sure I’ll jump in on the spp seems like straight up volatility might offer an even better entry.

couldnt agree more with your takeaways

Can anyone tell me how to calculate the SPP offer price.

The SPP provides you with the opportunity to increase your holding of fully paid ordinary shares in Catapult at a price (Issue Price), which is the lower of:

• A$6.68 per Share, which was the issue price paid by investors under the Placement (Placement Price); and
• a 2% discount to the volume weighted average price of Shares traded on ASX (VWAP) during the 5 trading days up to, and including, the Closing Date of the SPP Offer (expected to be November 5, 2025), rounded to the nearest cent. 

Its looking like the offer price may be lower than $6.68 given current share price weakness but can anyone tell me how its exactly calculated?

Thanks!

I had to look it up @BoredSaint, but apparently it's like this:

VWAP = (Σ Price × Volume) ÷ (Σ Volume)

Example using daily data:

Day 1: Price $10, Volume 1,000 → 10,000

Day 2: Price $12, Volume 2,000 → 24,000

Day 3: Price $11, Volume 1,500 → 16,500

Total (Price × Volume) = 50,500

Total Volume = 4,500

VWAP = 50,500 ÷ 4,500 = 11.22

So, the 3-day VWAP is $11.22.

@BoredSaint , the easiest way would just be to put the query into something like Perplexity e.g.: "Please calculated the volume weighted share price average of shares for CAT on the ASX for the last 5 trading days and then apply a 2% discount to that price"

Which for the last 5 days would give you:

The current 5-day volume weighted average price (VWAP) for shares of Catapult Group International (CAT) on the ASX is A$6.9590. Applying a 2% discount to this price, the result is approximately A$6.82.​

Calculation

• 5-day VWAP: A$6.9590​
• 2% discount: 6.9590×0.98=6.819
• 6.9590×0.98=6.819 (rounded to A$6.82)

The adjusted VWAP for CAT (ASX) with a 2% discount is therefore A$6.82.

Alternatively you could actually create the calculation in a spreadsheet, and cut and paste all the trading data from your trading platform into the columns each day and get the real VWAP.

VWAP, or Volume Weighted Average Price, is calculated by dividing the total dollar value of all trades (price multiplied by volume for each trade) by the total trading volume over the selected period.

So above I've just cut and past some trades today for CAT, Column G is calculated as indicated by Price multiplied by Volume of each trade. Then you 'Autosum' at the bottom of each column and the VWAP is calculated by dividing the totals of the G4 column by the total of the F column (=G24/F24).

But if you're happy with the $6.68 price, then I wouldn't worry about it, as it will either be that price or lower.

Thanks for posting @jcmlemg , I just listened to the pod. Great insights into the raising game, although generally speaking reminded me that Adir is (in my humble opinion) a bit of a loose unit relative to the average asx chairman. He goes on to declare in the next section of the pod, that "oh I hate Tony Burke"! He's entitled to his own view but its a lack of professionalism to publicly say that, it could come back to haunt him and the company. I remember from his early strawman interview being a little concerned about him.....solidifies to me what a star Will Lopes has proven to be, right tech, right time and now the right leader.