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Why Pilbara Minerals (ASX:PLS) should be on investors’ radar for today?

  • January 14, 2021 09:35 AM AEDT
  • Hina Chowdhary
    Director, Equities Research Hina Chowdhary
    1378 Posts

    Hina Chowdhary is the Director, Equity Research at Kalkine and has an extensive experience of about 15 years in the area of Research, which includes 5+ years in Equities Research particularly.She has earned a Master of Science degree from the renowne...

Why Pilbara Minerals (ASX:PLS) should be on investors’ radar for today?

Summary

  • Pilbara Minerals has successfully raised A$60.6 million from the retail component of the entitlement offer.
  • Approximately 43.2 million shares were left unsubscribed which have been allocated to the sub-underwriters.
  • Pilbara’s share price has delivered a massive return of over 200% in the last one year.
Gold MTF non-AMP

On 14 January 2021, Pilbara Minerals Limited (ASX:PLS) announced that it has completed the retail component of its underwritten 1 for 7.6 pro-rata accelerated entitlement offer. The company has raised a total of A$60.6 million from the retail component via issuing new fully paid ordinary shares.

The offer was launched on 14 December 2020 and was closed on 11 January 2021. This was the final component of the capital raising by Pilbara Minerals.

Details of the Offer

The primary purpose of the find raising is to support the company in acquiring all the shares in ALO and the Altura Project. The company has issued new shares at the issue price of A$0.36 per share to raise A$60.6 million. In the institutional component of the entitlement offer, the company had already raised approximately A$121.3 million, which was closed in late December 2020.

Image Source: © Kalkine Group 2021

 The company received the subscription of approximately 125 million shares from the eligible retail investors and the remaining 43.2 million shares were not subscribed. Therefore, the remaining shares have been allocated to the sub-writers of the offer, Resource Capital Fund VII and AustralianSuper Pty Limited.

The total no of shares to be issued under the retail component is approximately 168.2 million (including shares issued to the underwriters). All the new shares will rank equally with the existing listed shares and are expected to be allotted on 18 January 2021 and commence trading on ASX on the same day.

Macquarie Capital (Australia) was appointed as a financial adviser, sole lead manager, bookrunner and underwriter to Pilbara Minerals.

Read More: Pilbara Minerals (ASX:PLS) sets new quarterly shipment record

Management Commentary

Managing Director and CEO of Pilbara Minerals, Ken Brinsden was delighted with the retail investors' support, which has made the entitlement offer successful. He also acknowledged that the offer combined with the cornerstone placement was necessary to fund Altura Project's acquisition. The acquisition would now be unlocking the full value of synergies and benefits for the company’s shareholders.

Stock Performance

Image Source: © Kalkine Group 2021

The stock has been in a strong uptrend from the last three months, delivering a massive 194.8 per cent return. The stock had also made a new 52-week high of A$1.15 yesterday. The last one-year return of the stock stands at 219.4 per cent. 

 

 


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