Alpha Namibia Industries Renewable Power (ANIREP) shareholders have approved plans to raise approximately N$564 million through a rights offer to support the company’s expansion in the renewable energy sector.
Listing the rights offer shares have effect and commence trade on Tuesday, 5 December 2023. The company will issue 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.
This comes as 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 million”.
These projects are anticipated to expand ANIREP’s Independent Power Producer (IPP) portfolio to over 94.8 MWp.
“The rights offer has garnered support from major shareholders holding 88.8% of the company’s shares, 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 56.8 MWp and explore potential acquisition opportunities to add 25MW to its existing capacity,” said the company.
ANIREP advised shareholders to review the circular distributed by the company, available from the registered office or the ANIREP website, to understand the full details of the rights offer.
The proceeds from the rights issue will be utilised for the development and acquisition of additional renewable energy generation capacity, to increase ANIREP’s market share of renewable energy generation in Namibia, from 7% as of February 2022 closer to the desired minimum target of 30% of the forecasted 760MW by 2030.
The company has also successfully completed the construction of the 25 MW 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.
The initial capital raised by ANIREP as a CPC, in an amount of N$167.1 million, was primarily used to acquire an IPP platform and the largest solar PV IPP, EPC and O&M Company in Namibia in 2020 for a combined total of N$144.5 million.
ANIREP successfully established a Namibian-owned and operated combined IPP/EPC/O&M platform, which generated EBITDA of N$53.2 million and earnings after tax of N$19.9 million (before tax N$28.7 million) for the year ended 28 February 2023.
Revenue of N$79 million was earned in the year ended 28 February 2023.
