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Third party research

Viscaria: A two-step equity raise - ABG

Viscaria

This is a third party research report and does not necessarily reflect our views or values

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* SEK 800m directed share issue completed, 28% dilution* Next step is a rights issue of ~SEK 750m (~55% guaranteed)* Full subscription looks likely, now well capitalised to re-open ViscariaSEK 800m directed share issue completed...Viscaria has announced a two-stage capital raise, with the first stage being a directed share issue that was completed yesterday evening. This amounted to SEK 800m (upsized from SEK 750m) at a subscription price of SEK 19/share, or 14.4% discount to yesterday's closing price. After the directed share issue, the new share count becomes 150.2mn, for an EPS dilution of 28%. Several existing shareholders participated, including Thomas von Koch and Jan Ståhlberg, who contributed SEK 200m, taking their combined ownership from 15.5% to 18.2% of outstanding shares....and a pending rights issue announcedThe second part of the capital raise will be a rights issue, open for all shareholders, of SEK 750m, for which the price has not yet been communicated. Thomas von Koch and Jan Ståhlberg have agreed to guarantee three times their pro-rata share after the directed share issue, which we calculate would amount to a guarantee 54.6%. However, 50% of their contribution will be settled against existing shareholder loans. Apart from this, Viscaria says there is indicated interest among existing institutional investors to participate.Well capitalised for development capexWe see it as likely that the rights issue will be fully subscribed, and that Viscaria raises a total of SEK 1.55bn in gross proceeds (less settlement of shareholder loans and rights issue costs). Combined with the recently announced project debt financing package of up to SEK 3.9bn (terms still to be announced), this leaves the company well capitalised to invest in the re-opening the Viscaria mine, which we currently estimate will reach full production by 2029.
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