Genesis Energy Limited (GNE: NZX/ASX), a diversified New Zealand energy company that sells electricity, reticulated natural gas and LPG, and is one of New Zealand’s largest energy retailers, has announced a NZ$400 million equity raise. The funds are earmarked to accelerate the development of renewable generation and dispatchable firming capacity, underpinning the company’s Gen35 strategy. This announcement comes on the heels of a record first-half normalised EBITDAF of NZ$307 million for the six months ended 31 December 2025, a 38% increase compared to the previous year.
The equity raise consists of a NZ$100 million underwritten placement at NZ$2.15 per share and a NZ$300 million underwritten 1-for-7.9 pro rata renounceable rights offer at NZ$2.05 per share. Genesis will use the proceeds to reduce net debt, enabling the company to aggressively pursue growth opportunities and enhance New Zealand’s energy security. The company noted that its market-leading flexibility, growing renewable generation, and established customer base supports continued delivery of its Gen35 strategy.
Genesis has a development pipeline that includes projects with an aggregate forecast generation capacity of 2,500 MW. Key projects include the Edgecumbe and Leeston solar farms, the Rangiriri solar farm acquisition, and the Huntly Battery Energy Storage System (BESS). The company has also secured a power purchase agreement (PPA) for 70% of the Mt Cass wind farm output. These initiatives are designed to displace baseload thermal generation and increase dispatch flexibility.
The Crown has committed to subscribe for approximately NZ$198 million of new shares to maintain a 51% shareholding following completion of the offer. The interim dividend has been set at 7.30 cents per share, payable on 25 March 2026, though new shares issued under the placement and rights offer will not be entitled to this dividend. Genesis has maintained its FY26 normalised EBITDAF guidance at NZ$490 million – NZ$520 million and increased its FY28 normalised EBITDAF target to the upper NZ$500 million range.
