29Metals Limited (ASX:29M) Completes Institutional Placement
29Metals Limited (ASX:29M) has successfully completed its fully underwritten institutional placement and entitlement offer, raising approximately $154 million. The offer price was set at $0.27 per share, which reflects a 16% discount to the theoretical ex-rights price (TERP) of $0.32 based on the last closing price of $0.37.
Investor Participation
The company experienced strong support from both new and eligible existing institutional shareholders. Notably, approximately 82% of existing shareholders, excluding EMR Capital, subscribed for their entitlements. New Shares not taken up were allocated to eligible institutional investors, prioritising existing shareholders.
CEO Comments
James Palmer, Chief Executive Officer, expressed satisfaction with the response, stating, “The level of support shown by our existing shareholders, as well as new investors, has been very encouraging. This Equity Raising drives a balance sheet reset, fully funds development at Gossan Valley to first ore, and provides support to progress water reduction efforts at Capricorn Copper.”
Upcoming Retail Offer
The upcoming retail entitlement offer is expected to raise approximately $26 million, opening on 10 December 2024. Eligible retail shareholders in Australia and New Zealand can participate in this non-renounceable offer which will close on 19 December 2024.
The New Shares will rank equally with existing shares from their issue date, and trading in 29Metals shares is expected to resume on the ASX from market open on 5 December 2024.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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