Highlights

  • 29Metals shares dropped 30.65% on 21 January to AUD 0.43 following a discounted institutional fundraising.
  • The Institutional Entitlement Offer raised approximately AUD 119 million at AUD 0.40 per share, representing discounts of 30.2% to TERP, 35.5% to the last closing price, and 26.6% to the 30-day VWAP.
  • Retail Entitlement Offer will open on 28 January 2026 to raise approximately AUD 31 million.

Shares of 29Metals Limited (ASX:29M) fell sharply by 30.65% to AUD 0.43 on 21 January 2026, despite the recent rise in copper prices. The decline comes after the copper miner announced a capital-raising initiative at a significant discount to recent trading levels, prompting investor concern over potential dilution.

Shares Slide After Discounted Institutional Raising

29Metals’ sharp decline in share price came in the wake of the completion of its Institutional Entitlement Offer. The company raised around AUD 119 million through the sale of new shares priced at AUD 0.40 each, substantially below recent trading levels. The offer price represented a 35.5% discount to the last closing price of AUD 0.62 on 19 January and a 30.2% discount to the theoretical ex-rights price (TERP) of AUD 0.57.

The discounted raising triggered a market reaction, with investors selling shares due to dilution concerns. Although copper prices climbed above USD 5.8 per pound on Wednesday amid a weaker dollar and geopolitical risks, the share price decline illustrates the sensitivity of equity markets to capital-raising news.

Retail Entitlement Offer Scheduled for Late January

Following the institutional component, 29Metals will launch a Retail Entitlement Offer on 28 January 2026, targeting approximately AUD 31 million. Eligible retail shareholders in Australia and New Zealand as of 22 January will be entitled to participate. The retail offer will remain open until 11 February 2026, with shareholders able to apply for new shares on a non-renounceable basis.

Entitlements under the retail offer cannot be traded or transferred. Shareholders who do not participate will experience dilution of their ownership in 29Metals.

Shareholder Participation and Allocation

The Institutional Entitlement Offer received support from existing institutional shareholders, excluding EMR Capital, who subscribed for around 92% of their entitlements. Any remaining shares were allocated to eligible institutional investors. The company emphasized that all terms, conditions, and risks associated with the offer are outlined in the Investor Presentation lodged with the ASX on 20 January 2026.