Finder Energy Raises $21 Million in Placement, Eyes June EGM for Additional Shares
Finder Energy has completed the first tranche of its $33 million capital raise, issuing 42 million shares at 50 cents each to institutional and professional investors. The company will seek shareholder approval in June for a second tranche involving 12 million more shares.
- Tranche 1 placement raises $21 million at $0.50 per share
- Tranche 2 involves 12 million shares pending shareholder approval
- Extraordinary General Meeting expected in June 2026
- Funds likely to support KTJ oil project development
- Placement targets institutional, professional and sophisticated investors
Successful $21 Million Placement Completes First Tranche
Finder Energy Holdings Limited (ASX:FDR) has issued 42 million fully paid ordinary shares at 50 cents each, raising $21 million before costs in the first tranche of its ongoing capital raising. The placement was made to a mix of new and existing institutional, professional, and sophisticated investors, reflecting continued market interest in the company’s growth plans.
This tranche follows Finder’s recent efforts to accelerate funding for its KTJ oil project, a strategic development in Timor-Leste that has attracted significant capital support. The placement price aligns with the $0.50 share price used in the company’s recently opened $3 million Share Purchase Plan, which offers shares at a 15% discount to recent trading levels and aims to boost funds for KTJ engineering and procurement Share Purchase Plan details.
Pending Shareholder Approval for Second Tranche
Finder plans to issue a further 12 million shares in a second tranche, comprising 10 million shares under ASX Listing Rule 10.11 and 2 million shares under Listing Rule 7.1. This tranche is subject to shareholder approval at an Extraordinary General Meeting expected in June 2026. The company will communicate the EGM details through the ASX platform in due course.
The second tranche is designed to complete the company’s targeted $33 million equity raise, which includes the $21 million already raised and the $3 million from the Share Purchase Plan. This comprehensive capital raising effort is aimed at fast-tracking the KTJ project, which has secured key infrastructure such as the Petrojarl I FPSO and a farmin agreement covering half the development costs, positioning Finder for a final investment decision targeted for mid-2026 KTJ project acceleration.
Capital Raising Supports KTJ Development Milestones
The KTJ oil project remains central to Finder’s near-term growth strategy, with recent regulatory approvals granting long-term tenure over the development area and engineering validation of the FPSO vessel confirming technical feasibility. The capital raised through this placement and the Share Purchase Plan will likely underpin ongoing front-end engineering and procurement activities, ensuring the company remains on track for its planned final investment decision and first oil production by late 2027.
While the company has not disclosed specific uses for the funds or the impact on dilution beyond the share issuance, the sizeable capital injection signals strong investor confidence in Finder’s development timeline and operational strategy.
Bottom Line?
The upcoming EGM will be pivotal in securing the full $33 million capital raise, with implications for Finder’s KTJ project funding and shareholder dilution.
Questions in the middle?
- Will shareholder approval for the second tranche proceed smoothly at the June EGM?
- How will the capital raise impact Finder’s share price and investor sentiment in the near term?
- What specific milestones will the raised funds enable in the KTJ project development?
