LGI’s Capital Raise Faces Uncertainty Amid Regulatory and Scale-Back Risks
LGI Limited has launched a $5 million Share Purchase Plan offering eligible shareholders in Australia and New Zealand the chance to buy additional shares at a slight discount. The capital raise aims to fund the acceleration of key renewable energy projects.
- Share Purchase Plan (SPP) open to eligible shareholders in Australia and New Zealand
- Offer price set at $3.85 per share, representing a modest discount to recent trading prices
- SPP aims to raise up to $5 million following a $51.2 million placement
- Funds targeted to accelerate high conviction projects in execution and development
- Company retains discretion to scale back applications and vary offer closing date
LGI's Strategic Capital Raise
LGI Limited (ASX – LGI), a company focused on renewable energy and environmental services, has officially opened its Share Purchase Plan (SPP) to eligible shareholders in Australia and New Zealand. This initiative follows a recent $51.2 million placement and is designed to raise an additional $5 million. The offer price is set at $3.85 per share, reflecting a slight discount to the recent volume-weighted average price, signaling management’s confidence in the company’s growth trajectory.
Opportunity for Shareholders
Eligible shareholders as of 7 – 00 pm Sydney time on 22 October 2025 can participate by purchasing up to $30,000 worth of additional shares without incurring brokerage or transaction fees. The SPP opens on 29 October and closes on 12 November 2025, although LGI reserves the right to adjust these dates. This approach allows existing investors to increase their stake conveniently while supporting the company’s capital needs.
Funding Growth in Renewable Projects
The proceeds from the SPP will be directed towards accelerating LGI’s ‘High Conviction Projects’ currently in execution, as well as providing balance sheet capacity to pursue promising projects in development. This capital injection is critical as LGI continues to expand its footprint in biogas, solar, and battery technologies, all aimed at advancing a zero-carbon future.
Risk Management and Regulatory Engagement
LGI’s announcement also highlights a comprehensive risk management framework addressing operational, regulatory, and market risks. Notably, the company is actively engaging with the Federal Government’s Department of Climate Change, Energy, Environment & Water on potential changes to the Australian Carbon Credit Unit (ACCU) scheme, which could impact revenue streams. This proactive stance underscores LGI’s commitment to navigating evolving regulatory landscapes while maintaining operational resilience.
Shareholder Engagement
To provide further clarity, LGI’s CEO, Jarryd Doran, will host a live shareholder briefing on 5 November 2025. This session aims to discuss the SPP details and the strategic use of funds, offering shareholders an opportunity to engage directly with management. The board encourages participation, reflecting confidence in the company’s future prospects.
Bottom Line?
LGI’s SPP marks a pivotal step in funding its renewable energy ambitions, but investors should watch closely for subscription levels and regulatory developments.
Questions in the middle?
- How will LGI manage potential scale-backs if demand exceeds the $5 million target?
- What impact might changes to the ACCU scheme have on LGI’s project economics and revenue forecasts?
- How will the recent capital raise influence LGI’s share price and shareholder dilution in the near term?
