An offer letter is a formal invitation to purchase securities in a capital raising.

If you have bid into a capital raise and received an allocation, this will be formalised in an offer letter.

The letter includes the following:

• An overview of the transaction - the total size of the raise, total number of new securities to be issued, price of new securities, list of relevant information materials and general information about the structure of the transaction.

• Your allocation - overview of the securities you have been offered and the split across multiple tranches if applicable.

• Timetable - the dates for settlement, funds due, and allotment of securities are listed here. Note that this section is “indicative” and may end up changing without notice, usually as a result of delays in collecting funds or shareholder meeting approvals.

• Confirmation of allocation - this section summarises the offer that is being made to you and requires your signature/acceptance.

• CARD form - this is only required for DvP settlements. It outlines the settlement procedure for the offer and will need to be completed and signed by your settling broker.

An offer letter is a legally binding document, it is an agreement between yourself and the settling counterparty to acquire the shares that are offered to you. It is important to review all elements of the document and keep it in your records once the transaction is completed.