* Directed issue of SEK 17.8m at a ~20% discount to Friday's close
* Chairman, CEO and CTO buy Amitime's block ahead of its China IPO
* Dilution of 15.3%, a further 6.0% upon full warrant exercise
Directed issue of SEK 18m
ES has announced a proposed directed issue of units of ~SEK 17.8m before costs, at SEK 15 per share, a ~20% discount to Friday's close of SEK 18.65. The dilution effect is 15.3% of shares, and a further 6.0% upon full exercise of the TO4 warrants, which could provide an additional ~SEK 12.3m. Proceeds are intended to fund the scaling of the ODM/White Label offering and a build-out within commercial real estate as the propane platform is finalised. The issue is conditional on an EGM expected around 20 August. Separately, Amitime has agreed to place its 295,620 shares (~SEK 4.4m) at the issue price with, among others, ES's Chairman, CEO and CTO, as Amitime's planned IPO in China prohibits ownership in ES Group, which is a customer of Amitime. The Turkey factory JV is unaffected.
Reduced financing risk, insiders show conviction
We think the raise reduces balance sheet risk somewhat (cash balance of SEK 24m at Q1'26), but most importantly, ES insiders buying Amitime's block at the issue price is a signal of conviction. We view Amitime's exit as driven by regulatory requirements ahead of its IPO rather than commercial factors, and note the Turkey JV is unaffected. We will revisit our estimates in connection with the Q2 report on 21 August.