Alpha Namibia Industries Renewable Power (ANIREP) has raised N$557 million through a rights offer that closed on 4 December in a bid to support the company’s expansion in the renewable energy sector.
The company issued 71,403,185 ordinary shares at a price of N$7.90 per rights offer share, with a ratio of 423 rights offer shares for every 100 ordinary shares held as of Friday, 10 November 2023, a subscription rate of 98.77%.
“That a total of N$557,138,096.30 has been received, which is equivalent to a total of 70,523,809 rights offer shares being subscribed for out of the total 71,403,185 rights offer shares on offer,” said a notice to shareholders.
Meanwhile, the board will carry out an allotment to shareholders complete with new ANIREP shares under powers granted to the board in line with the rights offer timeline.
ANIREP has seen impressive growth since its listing on the Namibian Stock Exchange (NSX) in 2019, having expanded its generation capacity from 0MWp in 2019 to 13MWp in 2023.
“The company aims to further increase its capacity by 81.8MWp by the 2025-2026 year-end, with a long-term goal of surpassing 200MW. This growth aligns with Namibia’s renewable energy targets, aiming to reach 760MW by 2030,†the company revealed in a notice to shareholders recently.
According to the notice, the rights offer is expected to provide ANIREP with the necessary capital to acquire and develop several renewable energy projects.
The projects include Aussenkjer Solar One Namibia, Otjiwarongo Expansion, and Dundee Precious Metal Tsumeb, which collectively require an estimated N$415 million equity investment.
Furthermore, ANIREP is also exploring further potential acquisition targets, “with a view to adding 25MW to its existing capacity, with an estimated equity requirement of N$123 millionâ€.
These projects are anticipated to expand ANIREP’s independent power producer portfolio to over 94.8MWp.
“The rights offer has garnered support from shareholders of the company, signalling confidence in ANIREP’s future prospects. The funds raised from the rights offer will also be used to optimise ANIREP’s capital structure, add own developed capacity of 56.8MWp and explore potential acquisition opportunities to add 25MW to its existing capacity,†said the company.
The company has also successfully completed the construction of the 25MW solar PV plant at Omburu Substation and continues to secure land, permits, and power purchase agreements for additional projects, further contributing to Namibia’s renewable energy goals.
