Afentra (AIM:AET) the upstream oil and gas company focused on acquiring production and development assets in Africa, has raised gross proceeds of US$40m through an oversubscribed placing.
It is issuing 44.32m new shares priced at 67p each, split between a firm placing of 22.62m shares (c.US$20.4m) using existing authorisations and a conditional placing of 21.7m shares (c.US$19.6m) subject to shareholder approval.
At 67p, the placing is being done at a reasonably small discount, and the new shares will represent about 19.6% of the company's existing share capital (or 16.4% of the enlarged share capital).
Certain directors subscribed for new shares at 67p for aggregate gross proceeds of £369,569, including Thierry Tanoh, Andrew Osborne and Gavin Wilson.
A retail share offer aims to raise additional funds by opening the offer to retail investors on the same terms.
Accelerate opportunities
The junior oil and gas firm, upon announcing the placing, told investors it was in a strong position to deliver its near-term growth plan, which aimed to double production to approximately 13,000 barrels per day by 2028.
But, added that it has "a much larger opportunity" that it said can be accelerated to deliver growth and value accretion.
In particular, it pointed to follow-up drilling activity and workovers, new drilling, near-field developments and fresh exploration.
Now, it intends to use the proceeds of the equity raise to accelerate these growth activities and enhance strategic flexibility.
