The Australian Lynas Rare Earths (WKN 871899) aims for significant long-term growth given the steadily increasing demand for so-called rare earths. To this end, it has now completed a capital raise of AUD 750 million with institutional investors.
As the company announced, there was significant interest from both existing and new investors and institutions who wanted to invest at a price of AUD 13.25 per share in the only rare earths production and processing company outside China. No wonder, as this represents a discount of 10% to the previous closing price and 8.6% to the ten-day average of Lynas shares. Now, 56.6 million new shares will be issued, which corresponds to 6.1% of the outstanding shares.
New Capital to Accelerate Lynas’s Growth Strategy
CEO Amanda Lacaze is understandably very pleased. The new capital will enable Lynas to accelerate its growth within the framework of the “Towards 2030” strategy. The company will then have a balance sheet that will allow it to seize strategic opportunities that may arise in the rapidly developing market for rare earths, according to Ms. Lacaze.
The company’s growth strategy focuses in particular on maximizing returns from current capital investments, including production increases linked to customer demand, as well as expanding downstream processing capabilities and supply chain reach outside China.
Lynas also offers eligible investors from Australia and New Zealand the opportunity to invest on the same terms as the institutions. This is expected to raise up to an additional AUD 75 million.
