LGI’s $56.2M Capital Raise Fuels Growth but SPP Remains Uncertain
LGI Limited has successfully raised $51.2 million through a placement and launched a $5 million Share Purchase Plan to fund key renewable energy projects and strengthen its balance sheet.
- Completed $51.2 million placement at $3.85 per share
- Launched $5 million Share Purchase Plan for existing shareholders
- Funds to accelerate expansions at Mugga Lane, Belrose, and Nowra sites
- Capital to support new power station and grid-scale battery projects
- Balance sheet strengthened with $48 million undrawn bank capacity
Strong Institutional Backing for Capital Raise
LGI Limited (ASX, LGI), a leader in renewable energy solutions focused on landfill biogas recovery and battery storage, has announced a successful capital raising effort. The company secured firm commitments for a $51.2 million placement at $3.85 per share, attracting strong support from both new and existing institutional investors. This confidence underscores the market’s positive view of LGI’s strategic direction and growth potential.
Share Purchase Plan Opens Door for Existing Investors
In addition to the placement, LGI has launched a non-underwritten Share Purchase Plan (SPP) capped at $5 million, offering existing eligible shareholders the opportunity to buy shares at the same price. This move not only broadens shareholder participation but also signals management’s commitment to aligning with investor interests as the company embarks on its next growth phase.
Funding Growth in High Conviction Projects
The capital raised will be deployed to accelerate the execution of high conviction projects currently underway, including expansions at the Mugga Lane, Belrose, and Nowra sites. These projects are central to LGI’s strategy to increase renewable electricity generation and carbon abatement capacity. Furthermore, the funds will support the development of new power station expansions and grid-scale battery storage opportunities, positioning LGI to capitalize on emerging market demand.
Balance Sheet Strength and Future Flexibility
Post-placement, LGI expects to maintain approximately $48 million in undrawn bank capacity, significantly enhancing its financial flexibility. This strengthened balance sheet provides the company with the capacity to pursue additional projects and tenders as they arise, while maintaining prudent leverage. The approach reflects a balanced growth strategy that prioritizes both expansion and financial resilience.
Leadership Confidence and Market Implications
LGI’s Non-Executive Chair, Vik Bansal, highlighted the strong investor support as a validation of the company’s growth trajectory and sustainability mission. CEO Jarryd Doran echoed this sentiment, emphasizing the funding’s role in accelerating key expansions and enabling the next wave of renewable infrastructure development. For investors, this capital raise signals LGI’s readiness to scale operations and deepen its footprint in Australia’s clean energy sector.
Bottom Line?
LGI’s successful capital raise sets the stage for accelerated project delivery and positions the company for sustained growth in renewable energy.
Questions in the middle?
- How quickly will LGI execute the planned expansions at Mugga Lane, Belrose, and Nowra?
- What are the timelines and expected returns for the new power station and battery projects in development?
- How will the non-underwritten SPP perform in terms of shareholder uptake and overall capital raised?
