Service Stream Completes AU$404 Million Institutional Capital Raising to Fund Programmed Acquisition

Highlights

• Service Stream Limited has successfully completed the institutional entitlement offer and placement, raising approximately AU$404 million.

• The institutional entitlement offer recorded a take-up rate of approximately 92.5% among existing eligible institutional shareholders.

• The fundraising will partially support the proposed AU$975 million acquisition of Programmed, strengthening Service Stream's operational capabilities and growth prospects.

Service Stream Secures AU$404 Million Through Institutional Capital Raising

Service Stream Limited (ASX: SSM) confirmed on 10 November 2026, the successful completion of the institutional component of its accelerated non-renounceable entitlement offer and institutional placement. The fundraising secured approximately AU$404 million to partially fund the company's proposed acquisition of Programmed.

The capital raising comprises approximately AU$186 million from the institutional entitlement offer and around AU$219 million from the institutional placement. Approximately 199 million new fully paid ordinary shares are expected to be issued at an offer price of AU$2.03 per share. The company's current market price stands at AU$2.090, declining by AU$0.081 or 3.738%.

Institutional Offer Attracts Strong Investor Participation

The institutional entitlement offer, structured on a 1-for-4.9 basis, attracted strong participation from existing institutional investors as well as new market participants.

Approximately 92.5% of eligible institutional shareholders took up their entitlements, excluding ineligible institutional investors.

The institutional placement has also contributed significantly to the fundraising, with approximately 108 million new shares expected to be issued, generating around AU$219 million. The new shares are scheduled to settle on 18 November 2026, with allotment and normal trading expected to commence on 19 November 2026, subject to ASX requirements.

Capital Raising to Support Programmed Acquisition

Service Stream intends to utilize the proceeds from the institutional capital raising to partially fund its proposed acquisition of Programmed for AU$975 million.

The purchase price remains subject to customary completion adjustments, including working capital and debt-related items. A potential reduction of up to AU$25 million may also apply if Programmed does not achieve a prescribed EBITDA hurdle for the financial year ending 31 March 2027.

Outlook

The retail entitlement offer is scheduled to open at 9:00 am on 16 November 2026 and close at 5:00 pm on 27 November 2026 (AEDT). Eligible retail shareholders will receive an information booklet outlining the eligibility criteria and participation process. The record date for the entitlement offer is 11 November 2026.

Service Stream expects the acquisition of Programmed to expand its service capabilities, strengthen its market position and support long-term business growth. Investors will continue monitoring the retail offer outcome and the progress of the proposed acquisition for further developments.

Note- All data presented is based on information available at the time of writing.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.Disclosure: The information mentioned above has been sourced from the company reports and a third-party database, i.e. Koyfin. Investors are advised to use strict stop-loss to protect their investments in case of any unfavorable/uncertain market events.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au