Australia’s Lynas Rare Earths has completed a A$750-million institutional placement to help fund its long-term expansion strategy as demand for rare earths accelerates.
The equity raising, fully underwritten and priced at A$13.25 a share, drew strong demand from existing investors and new institutions, the company said Friday.
The price represents a 10% discount to Lynas’ last closing price and an 8.6% discount to its ten-day average. About 56.6-million new shares will be issued, equivalent to 6.1% of existing shares on issue.
“We are very pleased with the success of the placement and the support we have received from existing shareholders and new high-quality institutional investors,” CEO Amanda Lacaze said.
“The A$750-million placement will be used to help accelerate Lynas’ growth via its Towards 2030 strategy. This will help us to optimise our performance from the Lynas 2025 capital investments and provide Lynas with the balance sheet strength to capitalise on strategic opportunities in the rapidly evolving rare earths market and consolidate our market-leading position.”
The company’s Towards 2030 strategy focuses on two priorities: maximising returns from its current capital investments, including ramp-ups tied to customer demand, and expanding downstream processing capacity and supply chain reach outside China.
In addition to the placement, Lynas will also offer eligible investors in Australia and New Zealand the chance to subscribe for up to A$30 000 of new shares each through a share purchase plan (SPP) at the same A$13.25 price. The SPP aims to raise as much as A$75-million and will run from September 5 to September 19.
