How to read an Appendix 3B in ninety seconds
An Appendix 3B is the ASX form a company lodges when it proposes to issue new securities — a placement, an options grant, a convertible note. Most are skimmed and forgotten. Ninety seconds of attention answers the only three questions that matter.
Before the questions, place the form in its pipeline. A 3B is an announcement of intent, not shares on the market. The supply goes live in two later steps: when the securities are issued, a cleansing notice under section 708A of the Corporations Act typically allows them to be on-sold immediately without a prospectus, and an Appendix 2A applies for quotation so the paper can actually trade.
1. How much, relative to what exists?
Part 1 states the number of securities proposed. Divide it by shares on issue. A 2% options grant is housekeeping; a 25% placement plus attaching options is a new cap table.
The same arithmetic tells you whether shareholders were asked. Companies can issue 15% of their share count per rolling year without approval (Listing Rule 7.1), plus 10% more for small caps with an AGM mandate (rule 7.1A). Every 3B states which rule the issue leans on — an issue that needed a shareholder vote tells you the register grew faster than the free allowance.
2. What does it cost the buyer?
The issue price — and for options, the exercise price — tells you where the new holders break even. Paper issued at a deep discount to market, or options struck at or below spot, is supply that arrives the moment the price moves. Watch for the phrase "AUD equivalent" on foreign-currency strikes.
3. When can it move?
Expiry dates and escrow terms decide when the supply is live. Unquoted options with a four-year expiry are a slow drip; quoted paper with a cleansing notice can be on the market the day it settles.
Every 3B we ingest is parsed field-by-field into the instrument register you see on a company page, and each instrument links back to the filing it came from. If a line in the register looks surprising, the source PDF is one click away — browse the filings or start from the screener.