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APA Successfully Completes $675 Million Institutional Placement
Published on
24 August 2023
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APA Group (ASX:APA) is pleased to announce it has successfully completed the underwritten $675 million ‘pro-rata’ institutional placement (Placement) component of its $750 million equity raising announced on Wednesday, 23 August 2023.1

Proceeds raised under the Placement and the Security Purchase Plan announced on Wednesday, 23 August 2023 (SPP) will be used to partly fund APA's acquisition of Alinta Energy Pilbara (Acquisition).

The Placement was strongly supported by APA’s existing security holders and together with new investors was well oversubscribed at the announced price of $8.50 per new stapled security (Placement Price). The Placement Price represents:

  • an 8.2% discount to APA’s closing price of A$9.26 on 22 August 2023; and
  • an 8.7% discount to APA’s 5 day VWAP of A$9.31 up to, and including, 22 August 2023.

APA will issue approximately 79 million new securities under the Placement which will rank equally with existing ordinary securities from the date of issue. All eligible institutional security holders who bid for up to their pro-rata share of new securities under the Placement were allocated their full bid, on a best endeavours basis1.

APA CEO and Managing Director Adam Watson said he was very pleased with the support received for the Acquisition and Placement from APA’s existing security holders and a number of new domestic and international institutional investors.

“The success of the Placement provides a strong endorsement that investors share our confidence in APA’s strategy to be the partner of choice and the opportunities in front of us from the Acquisition of Alinta Energy Pilbara. We now look forward to launching the SPP for eligible security holders on Thursday, 31 August 2023,” he said.

“This Acquisition gives us the scale and capability to be the leading provider of energy infrastructure solutions for the remote regions of Australia and is demonstration we are building momentum and executing our strategy.”

Settlement of the Placement is expected to take place on Monday, 28 August 2023, with allotment expected to occur on Tuesday, 29 August 2023.

The trading halt in respect of APA’s securities is expected to be lifted before market open today as a result of the release of this announcement.

Security Purchase Plan

As noted above, in addition to the Placement, APA will undertake a non-underwritten SPP for eligible security holders to raise approximately A$75 million2. Eligible APA security holders, being security holders who had a registered address in Australia or New Zealand on APA’s register at 7.00pm (AEDT) on 22 August 2023, will be invited to subscribe for up to A$30,000 of new securities under the SPP at the lower of the Placement Price, and a 2% discount to the 5-day VWAP of APA’s securities up to, and including, the closing date of the SPP, and free of any brokerage or transaction costs.

Further details of the SPP will be set out in the SPP Booklet, which will be released to the ASX and made available to eligible security holders in Australia and New Zealand on Thursday, 31 August 2023.

SPP timetable

Event Date 
Record date for SPP (7.00pm) Tuesday, 22 August 2023
Expected SPP offer opening date (9.00am) Thursday, 31 August 2023
Expected SPP offer closing date (5.00pm) Friday, 15 September 2023
Issue and allotment of new securities under the SPP Friday, 22 September 2023
SPP holding statements dispatched and trading of new securities issued under the SPP commences Monday, 25 September 2023

Further information and security holder enquiries

For further information on the SPP, or if you are an eligible security holder and you want to receive a copy of the SPP Booklet, please contact the APA Group Investor Information line on 1800 992 312 (toll free from within Australia) or +61 1800 992 312 (from outside Australia), from 7.30am to 7.30pm (Sydney time) Monday to Friday (excluding public holidays) during the SPP offer period, or visit APA’s website at www.apa.com.au.

1 For this purpose, an eligible institutional security holder's ‘pro-rata’ share was estimated by reference to APA’s beneficial register on 21 August 2023, but without undertaking any reconciliation. Accordingly, unlike in a rights issue, this may not truly reflect the participating security holder's actual pro-rata share. No security holder had a right or entitlement to participate in the Placement and APA had no obligation to reconcile assumed holdings (e.g., for recent trading or swap positions) when determining a security holder’s ‘pro-rata’ share. Institutional security holders who do not reside in Australia or other eligible jurisdictions were not able to participate in the Placement. APA and the underwriters disclaim any duty or liability (including for negligence) in respect of the determination of a security holder’s ‘pro-rata’ share.

2 APA may, in its absolute discretion, scale back applications over this amount or apply a higher cap to the SPP (and either accept applications in full or scale back applications over the higher cap).