Aspen Group (ASX:APZ) is raising up to AU$74 million through a placement and a share purchase plan to improve its growth prospects and meet increasing demand for affordable housing in Australia, according to a Thursday filing with the Australian bourse.

The equity raising consists of an institutional placement to raise AU$70 million and a securityholder purchase plan to raise up to AU$4 million, the filing stated. Both are priced at AU$2.90 per APZ security and are non-underwritten, it added.

MST Financial Services and Aitken Mount Capital Partners are the placement's joint lead managers.

In the same filing, Aspen maintained its full fiscal year underlying operating earnings guidance of AU$0.167 per share, a 21% increase year on year. It also reaffirmed its dividend per security guidance of AU$0.10, up 18% on FY2024.

Net rental income for the first 10 months of the fiscal year ended April 30 was AU$29.3 million, up 13% on the prior year.