The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch today following an update on the company's retail entitlement offer.
After hitting a multi-year high yesterday, it will be interesting to see if the Pilbara share price can top that performance today following the latest announcement.
After yesterday's closing bell, the Pilbara share price finished the day off at $1.15.
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Completion of retail entitlement offer
According to this morning's release, Pilbara advised that it has successfully completed its retail entitlement offer.
Underwritten for a 1-for-7.6 pro-rata basis, roughly 125 million new shares were issued to participating retail shareholders. Offered at 36 cents per share, the rights issue raised $60.6 million for the company.
Pilbara said that the remaining 43.2 million shares that were not taken up in the offer were allocated to sub-underwriters, AustralianSuper and RCF VII.
In total, 168.2 million new shares will be issued and rank equally among ordinary full-paid Pilbara shares. The new lot is expected to be allocated to participating shareholders' portfolios next Monday and will be available to trade.
The retail entitlement offer follows the company's institutional placement efforts to support its acquisition in Altura Lithium Operations Pty Ltd. Both proceeds raised $240.2 million to fund the takeover. Pilbara stated that it is on schedule to purchase all shares in Altura Lithium Operations and its Altura Project.
What did management say?
Pilbara managing director and CEO Mr Ken Brinsden welcomed the result, saying:
We are delighted with the level of support we have received from retail shareholders and are pleased to now confirm the successful completion of the Entitlement Offer.
… Together with the cornerstone placement announced on Monday, 14 December 2020, provides Pilbara Minerals with the funding necessary to complete the acquisition of the neighbouring Altura Project on an unencumbered basis, thereby realising the full value of synergies and benefits for Pilbara Minerals' shareholders that arise from this unique opportunity.
About the Pilbara share price
The Pilbara share price has been storming higher over the past 12 months, reaching a multi-year high of $1.15 yesterday.
Falling to as low as 13.5 cents in March when COVID-19 hit the world economy, Pilbara shares have been on a tear ever since. For those lucky investors who were brave enough to pick up some shares, you would be sitting on a gain of 751%.
