- Genex Power (GNX) has successfully completed the retail component of an entitlement offer, first announced last month
- Under the retail component, around 96.6 million new shares will be issued, raising just over $19.3 million in proceeds before costs
- The pro-rata entitlement offer and placement were conducted to raise funds for Genex’s Kidston Pumped Storage Hydro Project
- The company expects the new shares to start trading on the ASX on a normal settlement basis on April 26
- Genex Power is up 2.44 per cent and trading at 21 cents per share
Genex Power (GNX) has successfully completed the retail component of an entitlement offer, first announced last month.
On March 24, the energy company revealed plans for a capital raise, consisting of an institutional placement and 11-for-20 pro rata non-renounceable entitlement offer. The capital raise was intended to raise a combined $90.3 million in proceeds to fund Genex’s Kidston Pumped Storage Hydro Project.
Under the placement, the company received commitments to raise $34 million, through the issue of 170.1 million shares at 20 cents each. Under the entitlement offer, Genex planned to offer an additional 280.3 million shares, to raise $56.3 million.
The company has now completed the retail component of the entitlement offer, resulting in the issue of 96,670,984 new shares to retail shareholders. At 20 cents per new share, the retail component raised $19,334,196.80 in proceeds (before costs).
The retail component consisted of 1805 applications for rights totalling $17,359,501.40 and 646 applications for additional shares worth $1.974,695.40.
The shortfall of $14,939,996.80, which was not taken up under the retail component, will be allotted to the underwriters of Genex’s entitlement offer.
New shares issued through both the entitlement offer and placement should be allotted on April 23, with the expectation that they begin trading on the ASX on a normal settlement basis on April 26, 2021.
The proceeds will be used by the company to fund construction of the Kidston Pumped Storage Hydro Project in North Queensland.
Genex Power is up 2.44 per cent, trading at 21 cents per share at 1:33 pm AEST.