Liquefied Natural Gas announced it will be completing a placement of c. 45m new fully paid ordinary shares to sophisticated and professional investors. The placement is being conducted within the 15% capacity available to the company.
The company has appointed Foster Stockbroking as Lead Manager and will also be utilising the recently introduced ASX BookBuild Facility to broaden investor support and enable qualified clients from other organisations the opportunity to participate. The company’s US advisor, EAS Advisors, is also assisting with the placement.
Pricing of the placement will be determined following a review of the Lead Manager’s demand and on-market bids. However the opening price for the bookbuild has been set at $0.34/sh, which represents an 11% discount to the 5 day VWAP. The placement is expected to raise a total of between $15.3m and $16.2m, subject to the final pricing.
Foster Stockbroking, as Lead Manager, will be paying a stamping fee of 2.00% on allocations made via the ASX BookBuild Facility. Brokers may also charge brokerage in relation to the purchase of shares in the company.
The proceeds from the equity raising will be deployed towards progressing Magnolia LNG on a 100% ownership basis. Specifically the company will be progressing all permits and environmental approvals required by the Federal Energy Regulatory Commission as well as finalising all commercial agreements to facilitate a Final Investment Decision in first half 2015.
The company’s Managing Director, Maurice Brand, commented “We have completed extensive marketing to investors in recent months and the response has been very supportive. I am expecting the placement to receive solid support and the company will then be well funded during the final approvals process and development phase in calendar year 2014.”
LNG World News Staff, December 09, 2013; Image: LNG Ltd