L1 Gold Fund has completed its retail entitlement offer, taking its latest equity raising to approximately A$375.4 million. L1 Group has also subscribed for A$42 million through the remaining shortfall offer, while the final allocation remains open.
- A$78.5 million raised through the retail entitlement offer
- 166.8 million new shares issued across the raising
- L1 Group subscribes for A$42 million at A$2.25 per share
- New shares expected to begin normal ASX trading on 17 September
- Second shortfall offer remains open for up to three months
Retail Offer Adds A$78.5 Million
L1 Gold Fund Limited (ASX:LGF) has added approximately A$78.5 million to its capital base through the retail leg of its entitlement offer, bringing the fund's broader equity raising to about A$375.4 million. The retail offer issued 34,901,798 new shares at A$2.25 each.
The result completes the retail component of a capital raising that also included an institutional placement, an institutional entitlement offer and a first shortfall offer. Across those transactions, LGF will have issued 166,838,745 new shares, with the company saying the earlier institutional stages received strong support from existing and new eligible shareholders.
L1 Group Re-enters the Shortfall
The most notable feature of the final allocation is L1 Group Limited's (ASX:L1G) decision to subscribe for A$42 million through the second shortfall offer. L1G had previously declined to take up its equivalent entitlement in the institutional offer so that the shares could be placed with new shareholders through the first shortfall process.
That decision has now been partly reversed in economic terms: L1G, through its investment entity Platinum Asset, has subscribed at the same A$2.25 offer price, matching its original entitlement. The announcement does not state what proportion of LGF the new shares will represent after the issue, leaving the precise dilution for existing holders unclear from this release alone.
Share Issue Dates and Investment Mandate
The retail shares, together with the shares allocated to Platinum Asset under the second shortfall offer, are expected to be allotted and issued on 16 September 2026. Normal-settlement trading on the ASX is expected to begin the following day. The new shares will rank equally with LGF's existing ordinary shares.
LGF says the proceeds will be invested under L1 Capital's current investment strategy for the company. The second shortfall offer remains open for up to three months after the retail offer's close, although the company retains discretion to close it earlier. That means the A$375.4 million figure is the committed amount disclosed so far, rather than necessarily the final possible total.
Bottom Line?
The capital is largely secured, but the final size of the raising and the resulting ownership mix will not be fully settled until the second shortfall offer closes.
Questions in the middle?
- Will further subscriptions be made before the second shortfall offer is closed?
- What will LGF's post-raising share count mean for existing holders' ownership percentages?
- How will L1 Capital deploy the enlarged pool of capital under its existing investment strategy?