Latrobe Magnesium Limited has successfully closed its non-renounceable entitlement offer, raising approximately $4 million with Shaw Partners underwriting the shortfall. The new shares are set to begin trading on the ASX on 12 November 2025.
- Non-renounceable entitlement offer closed with full underwriting
- Approximately $4 million raised through issue of over 32.5 million new shares
- Shaw Partners acted as underwriter and sub-underwriters involved
- Shares to commence trading on ASX from 12 November 2025
- All shareholders who applied for additional shares received full allocation
Capital Raising Completion
Latrobe Magnesium Limited (ASX, LMG) has announced the successful completion of its non-renounceable entitlement offer, raising approximately $4 million. The offer, which closed on 4 November 2025, saw shareholders subscribe for a total of 32,533,354 new shares. This capital raising effort was fully underwritten by Shaw Partners, ensuring the company secured the targeted funds despite a shortfall in shareholder applications.
Underwriting and Share Allocation
The underwriting agreement with Shaw Partners played a pivotal role in the offer’s success. While shareholders applied for shares both within and beyond their entitlement, all who applied for additional shares received 100% allocation, capped accordingly. The shortfall of 748,262.63 shares was taken up by the underwriter, reflecting confidence in Latrobe Magnesium’s prospects. Sub-underwriters also participated in the allocation process, further distributing shares in line with the offer’s terms.
Market Impact and Next Steps
The new shares are expected to commence trading on the ASX on 12 November 2025, following settlement and allotment scheduled for 11 November. This infusion of capital is likely to bolster Latrobe Magnesium’s balance sheet, potentially supporting ongoing operations or future growth initiatives. However, the company has not disclosed specific plans for the use of proceeds, leaving investors to watch closely for forthcoming updates.
Leadership Commentary
Chief Executive Officer David Paterson expressed gratitude to shareholders for their ongoing support, highlighting the successful capital raise as a positive milestone. The company’s ability to secure full underwriting coverage underscores market confidence in its strategic direction within the magnesium production sector.
Bottom Line?
With the entitlement offer fully subscribed and underwritten, Latrobe Magnesium is poised to strengthen its financial position, but investors will be keen to see how the new capital is deployed.
Questions in the middle?
- What specific projects or operational needs will the $4 million capital raise fund?
- How will the increased share capital impact Latrobe Magnesium’s earnings per share and shareholder value?
- Will the company pursue further capital raising or strategic partnerships following this offer?