Genesis Energy Raises NZ$100m Placement to Power Renewable Growth
Genesis Energy has completed a NZ$100 million share placement at NZ$2.15 per share, paving the way for a NZ$300 million rights offer to fund its renewable energy expansion under the Gen35 strategy.
- NZ$100 million fully subscribed placement at NZ$2.15 per share
- Strong support from existing shareholders including the Crown
- Upcoming NZ$300 million underwritten pro rata renounceable rights offer
- Funds to support Gen35 strategy focused on renewable generation growth
- Placement shares eligible for participation in the rights offer
Genesis Energy's Capital Raise Milestone
Genesis Energy Limited (ASX/NZX: GNE) has successfully completed the placement component of its NZ$400 million equity raising, securing NZ$100 million at NZ$2.15 per share. The placement was fully subscribed, reflecting strong investor confidence, including from cornerstone shareholder the Crown and new institutional investors. This milestone sets the stage for the next phase of Genesis's capital raising efforts.
Backing the Gen35 Strategy
Chief Executive Malcolm Johns emphasised that the robust demand for the placement shares underscores market support for Genesis’s Gen35 strategy. This plan aims to increase renewable energy generation capacity and enhance dispatchable firming assets, positioning the company for sustainable growth while bolstering New Zealand’s electricity market security. The equity raise is a critical step in funding these ambitions.
Rights Offer to Follow
Following the placement, Genesis will launch an underwritten pro rata renounceable rights offer to raise an additional NZ$300 million at NZ$2.05 per share. Eligible shareholders can apply for one new share for every 7.9 shares held as of the record date on 2 March 2026. Importantly, shares issued in the placement will be eligible to participate in this rights offer, providing continuity for new investors.
Timelines and Market Impact
The placement settlement is expected on 26 February for the ASX and 27 February for the NZX, with trading commencing shortly thereafter. The rights offer will open on 4 March and close on 17 March, with settlement and trading of new shares scheduled for late March. Investors should note that new shares from the placement will not be entitled to the interim dividend payable in March.
Strategic Implications
This equity raising initiative highlights Genesis’s commitment to transitioning its portfolio towards renewable energy sources while maintaining firming capacity to ensure grid reliability. The involvement of the Crown and institutional investors signals confidence in the company’s direction, but the market will be watching closely to see how the rights offer is received and how effectively the capital is deployed to meet Gen35 objectives.
Bottom Line?
Genesis’s capital raise marks a pivotal step in its renewable transition, with the upcoming rights offer set to test investor appetite further.
Questions in the middle?
- Will the NZ$300 million rights offer achieve full subscription amid market conditions?
- How will the equity raise impact Genesis’s share price and shareholder dilution?
- What specific renewable projects will be prioritised under the Gen35 strategy?
