Highlights

  • LGI raises around USD 51.2M through institutional placement at USD 3.85 per share.
  • Share Purchase Plan to raise up to USD 5M for eligible shareholders at same price.
  • Funds to support project expansion, development, and improve balance sheet flexibility.

LGI Limited (ASX:LGI) announced that it successfully completed a placement, securing approximately USD 51.2 million through the issuance of about 13.3 million new fully paid ordinary shares at an issue price of USD 3.85 per share. The placement attracted firm commitments from existing as well as new institutional and sophisticated investors.

The company also introduced a non-underwritten Share Purchase Plan (SPP) to raise up to an additional USD 5 million at the same price per share.

Use of Funds

Proceeds from the placement and SPP will be directed towards accelerating LGI’s High Conviction Projects in Execution, which include expansion activities at the Mugga Lane, Belrose, and Nowra locations. The funds will also be used to advance High Conviction Projects in Development, covering the next stage of power station growth and grid-scale battery initiatives. In addition, the capital raised will reinforce the company’s balance sheet, providing greater financial flexibility to pursue upcoming projects and tenders while maintaining conservative leverage levels.

Management Commentary

Chief Executive Officer, Mr. Jarryd Doran, added:

“We are delighted with the success of the placement and the strong support and endorsement of our strategy we received from existing shareholders and new investors. The USD 50 million funding will allow us to accelerate the expansions of the Mugga Lane, Belrose and Nowra sites and to fund the next wave of power station expansion and grid-scale battery opportunities in development.”

Placement Details

As part of the placement, LGI issued around 13.3 million new shares at an issue price of USD 3.85 per share. The pricing reflected no discount to the last closing price of USD 3.85 on 20 October 2025, a 0.1% discount to the five-day VWAP of USD 3.85, and a 0.6% discount to the fifteen-day VWAP of USD 3.85. The placement was jointly underwritten and led by Aitken Mount Capital Partners Pty Ltd and Morgans Corporate Limited, with Luminis Partners serving as the financial adviser.

Share Purchase Plan (SPP)

The Share Purchase Plan (SPP), limited to USD 5 million, gives eligible shareholders the opportunity to purchase up to USD 30,000 in new shares without any brokerage or transaction fees. LGI maintains the right to reduce applications as required.

Important dates for the SPP include the record date on 22 October 2025, the completion announcement on 23 October 2025, the opening on 29 October 2025, the closing on 12 November 2025, and the allotment of shares on 19 November 2025.

Financial Position

Following completion of the placement and SPP, LGI expects to have approximately USD 48 million in undrawn bank capacity, providing additional financial flexibility to support future project execution and development initiatives.

Share performance

The company is currently trading at AUD 4.150 per share, up by 7.79% from previous close of AUD3.850.