Capital Raise Boosts Execution Power for LGI Limited

Highlights:

• LGI Limited (ASX: LGI) successfully raised AUD $51.2 million through a strongly supported institutional placement at $3.85 per share, alongside a $5 million Share Purchase Plan (SPP) for eligible shareholders.
• The funds will accelerate High Conviction Projects at Mugga Lane, Belrose and Nowra, while supporting new power-station and grid-scale battery developments.
• Post-raise, LGI expects to hold around AUD $48 million in undrawn bank capacity, reinforcing balance-sheet strength and positioning the company for future renewable-energy growth opportunities.

At the time of writing, LGI Limited (ticker: ASX: LGI) has secured approximately AUD $51.2 million through a placement of around 13.3 million new fully paid shares at AUD $3.85 each, and simultaneously launched a Share Purchase Plan (SPP) to raise up to a further AUD $5 million at the same price.

Strong Institutional Backing and SPP Launch

The placement received firm commitments from both new and existing institutional and sophisticated investors, signalling strong confidence in LGI’s growth outlook. The Share Purchase Plan (SPP), priced at the same AUD $3.85 per share, allows eligible shareholders to apply for up to AUD $30,000 in new shares, with no brokerage fees or additional transaction costs.

Use of Proceeds: From Projects to Balance Sheet

LGI plans to deploy the capital across three key areas:

• Accelerating “High Conviction Projects in Execution,” such as expansions at its Mugga Lane, Belrose and Nowra sites.
• Driving forward new “High Conviction Projects in Development,” which include expanding power station capacity and exploring large-scale battery storage initiatives.
• Strengthening balance-sheet flexibility to support tender participation and maintain prudent leverage, with LGI expecting around AUD $48 million of pro-forma undrawn bank capacity post-raise

Strategic Implications for Investors

This capital raise positions LGI to pivot from concept to execution. The strong institutional support underscores investor belief in the company’s renewable-energy roadmap. With enhanced balance sheet capacity, LGI is set to move swiftly on identified growth opportunities rather than waiting for funding constraints to ease. While share dilution is inherent in the process, the company’s prudent focus on high-conviction projects and execution ability may mitigate concerns. In short: LGI’s AUD $51.2 million placement and AUD $5 million SPP reflect a decisive step — at the time of writing — towards scaling its portfolio of renewable electricity and battery-storage assets, while shoring up financial flexibility to capture future opportunities.

Disclaimer for Kapitales Research

The materials provided by Kapitales Research, including articles, news, data, reports, opinions, images, charts, and videos ("Content"), are intended for personal, non-commercial use only. The primary goal of this Content is to educate and inform readers. This Content is not meant to offer financial advice, nor does it include any recommendation or opinion that should be relied upon for making financial decisions. Certain Content on this platform may be sponsored or unsponsored, but it does not serve as a solicitation or endorsement to buy, sell, or hold any securities, nor does it encourage any specific investment activities. Kapitales Research is not authorized to provide investment advice, and we strongly advise users to seek guidance from a qualified financial professional, such as a financial advisor or stockbroker, before making any investment choices. Kapitales Research disclaims all liability for any direct, indirect, incidental, or consequential damages arising from the use of the Content, which is provided without any warranties. The opinions expressed by contributors or guests are their own and do not necessarily reflect the views of Kapitales Research. Media such as images or music used on this platform are either owned by Kapitales Research, sourced through paid subscriptions, or believed to be in the public domain. We have made reasonable efforts to credit sources where appropriate. Kapitales Research does not claim ownership of any third-party media unless explicitly stated otherwise.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com