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- APA Group (APA) raises $675 million through an institutional placement to partially fund its acquisition of Alinta Energy Pilbara
- The placement was oversubscribed and priced at $8.50 per new security, representing an 8.2 per cent discount to the previous closing price
- APA CEO Adam Watson expressed confidence in APA’s strategy and the opportunities presented by the acquisition
- Eligible investors will also have the opportunity to participate in a Security Purchase Plan (SPP) starting on August 31, 2023
- APA Group is down 3.46 per cent, trading at $8.94 at 1:35 pm AEST
APA Group (APA) has completed an institutional placement, raising $675 million as part of the company’s combined $750 million equity-raising initiative announced yesterday.
These funds are earmarked to partially finance the acquisition of Alinta Energy Pilbara, further solidifying APA’s position in the energy infrastructure sector.
The placement garnered strong support from APA’s existing security holders while also attracting new investors, resulting in oversubscription.
The placement was priced at $8.50, offering investors an 8.2 per cent discount compared to APA’s closing price of $9.26 on August 22, 2023.
Under the placement, APA will issue approximately 79 million new securities. These securities will hold equal rank with existing ordinary securities from the date of issuance.
APA Group CEO and Managing Director Adam Watson expressed his satisfaction with the level of support received from both existing and new investors.
“This acquisition gives us the scale and capability to be the leading provider of energy infrastructure solutions for the remote regions of Australia and is demonstration we are building momentum and executing our strategy.”
APA shares were down 3.46 per cent, trading at $8.94 at 1:35 pm AEST.
