Key Petroleum Limited has successfully placed all remaining shortfall shares from its recent entitlement offer, securing over A$312,000 in gross proceeds. This final step closes the capital raising round initiated in May 2025.
- Completed placement of all shortfall shares from entitlement offer
- Raised total gross proceeds of approximately A$312,215
- Entitlement offer priced at A$0.062 per new share
- No remaining shortfall shares after final placement on 30 July 2025
- New shares rank equally with existing ordinary shares
Entitlement Offer Completion
Key Petroleum Limited (ASX, KEY) has announced the successful placement of all remaining shortfall shares from its pro-rata non-renounceable entitlement offer, originally launched in early May 2025. The offer allowed eligible shareholders to acquire one new fully paid ordinary share for every five shares held, at a price of A$0.062 per share.
The entitlement offer closed on 6 May 2025, with initial subscriptions falling short of the total available new shares. To address this, the company placed the shortfall shares in two tranches, one at the closing date and a final tranche on 30 July 2025. This final placement extinguished any remaining shortfall, ensuring the full capital raising target was met.
Capital Raised and Share Impact
In total, Key Petroleum raised approximately A$312,215 through the issuance of 5,035,727 new shares. Of these, 471,874 shares were subscribed by eligible shareholders, with an additional 32,785 shortfall shares applied for by shareholders. The remainder was placed externally, including the final 2,954,682 shares issued in late July.
These newly issued shares rank equally with existing ordinary shares, maintaining shareholder equity balance. The capital injection provides Key Petroleum with additional funding flexibility, although the company has not yet disclosed specific plans for the use of proceeds.
Looking Ahead
While the completion of the entitlement offer marks a significant milestone in Key Petroleum’s capital management, investors will be keen to see how the company deploys these funds to advance its exploration and development activities. The absence of detailed guidance on the use of proceeds leaves some questions about the immediate operational impact.
Overall, the successful placement of all shortfall shares reflects positively on investor appetite and confidence in Key Petroleum’s prospects, even as the broader energy sector navigates ongoing market uncertainties.
Bottom Line?
Key Petroleum’s full placement of shortfall shares closes a key funding chapter, setting the stage for its next strategic moves.
Questions in the middle?
- How does Key Petroleum plan to allocate the funds raised from the entitlement offer?
- What impact will the increased share capital have on earnings per share and shareholder value?
- Are there any upcoming operational milestones or projects that this capital raise will support?