29Metals has successfully closed its institutional entitlement offer, raising approximately $119 million at a notable discount, with a retail offer set to launch later this month. The capital raise aims to fuel key growth projects across its mining portfolio.
- Institutional entitlement offer raises $119 million at $0.40 per share
- Offer price represents a 30% discount to theoretical ex-rights price
- Strong institutional shareholder support with 92% entitlement uptake
- Retail entitlement offer to open 28 January, targeting $31 million
- Funds earmarked for Gossan Valley investment, Capricorn Copper DFS, and exploration drilling
Successful Institutional Raise
29Metals Limited (ASX, 29M) has announced the successful completion of the institutional component of its underwritten entitlement offer, securing approximately $119 million. The offer was priced at $0.40 per share, reflecting a significant discount of over 30% to the theoretical ex-rights price and a 35.5% discount to the last closing price before the offer. This pricing strategy appears designed to incentivise strong participation amid current market conditions.
The institutional offer saw robust support from existing shareholders, excluding EMR Capital, who subscribed for about 92% of their entitlements. Any entitlements not taken up were fully allocated to other eligible institutional investors, ensuring the offer was fully subscribed. The new shares issued will rank equally with existing shares, maintaining shareholder equity structure.
Retail Offer on the Horizon
The retail entitlement offer is scheduled to open on 28 January 2026 and aims to raise an additional $31 million. Eligible retail shareholders in Australia and New Zealand will have the opportunity to participate, with the offer closing on 11 February. The non-renounceable nature of the offer means entitlements cannot be traded or transferred, potentially leading to dilution for shareholders who do not participate.
CEO James Palmer highlighted that the funds raised will support strategic growth initiatives, including ongoing investment in the Gossan Valley project, advancing a Restart Definitive Feasibility Study at Capricorn Copper, and drilling to test priority exploration targets across the portfolio. These projects are central to 29Metals’ plans to accelerate value realisation and growth.
Market and Strategic Implications
The sizeable capital raise reflects 29Metals’ commitment to advancing its base metals assets amid a competitive market environment. The discount applied to the offer price may weigh on short-term share price performance, but the strategic deployment of funds into key projects could underpin medium-term value creation. Investors will be watching closely how the retail offer performs and how effectively the company executes its growth plans.
Settlement of the institutional shares is expected on 28 January, with trading to recommence the following day. The company has cautioned that timings are indicative and subject to change, a reminder of the fluid nature of equity raisings.
Bottom Line?
29Metals’ successful institutional raise sets the stage for retail participation and critical project advancement, but execution risks remain.
Questions in the middle?
- Will retail shareholders match the strong institutional uptake in the upcoming offer?
- How will the market react to the dilution and discount embedded in the entitlement offer?
- What progress updates can investors expect on Gossan Valley and Capricorn Copper in the coming months?