Genesis Energy has commenced its fully underwritten one-for-7.9 pro rata renounceable rights offer, aiming to raise approximately $NZ300 million ($250 million). This offer is part of a wider equity raising initiative designed to bolster the company’s financial position and support its renewable energy projects. Genesis Energy is a New Zealand-based electricity generation and retailing company. It plays a crucial role in the country’s energy market by providing power to homes and businesses.
The rights offer follows the completion of a $NZ100 million underwritten placement to existing shareholders, including the Crown, and new investors. This placement was a precursor to the larger rights offer, allowing Genesis Energy to secure immediate funding and gauge investor interest. The combined equity raising efforts reflect the company’s strategic focus on sustainable growth and investment in renewable energy sources.
Under the terms of the rights offer, eligible shareholders are entitled to apply for one new share for every 7.9 shares held as of 7pm NZDT (5pm AEDT) on March 2. The issue price for these new shares is set at $NZ2.05, which represents a 10.8 per cent discount compared to the theoretical ex-rights price of $NZ2.30. It is also below the $NZ2.15 placement price.
The funds raised through the rights offer and placement will be used to advance Genesis Energy’s pipeline of renewable energy projects. These projects are crucial to the company’s long-term strategy of transitioning to a more sustainable energy portfolio and reducing its carbon footprint.
