Can Amplitude Energy Deliver on Growth After $131M Capital Raise?
Amplitude Energy has successfully raised $131 million through an institutional entitlement offer and placement, positioning itself to accelerate growth projects including the Nestor prospect and Patricia Baleen restart.
- Raised $131 million from institutional investors at $0.24 per share
- 93% take-up of institutional entitlements under the offer
- Funds targeted at East Coast Supply Project expansion and Patricia Baleen restart
- Fully underwritten retail entitlement offer to raise an additional $20 million
- New shares to commence trading from early October 2025
Strong Institutional Backing
Amplitude Energy Limited (ASX, AEL) has completed a significant equity raising, securing approximately $131 million through a combination of an institutional placement and entitlement offer. The offer was priced at $0.24 per share and saw strong participation from both existing institutional shareholders and new investors, with around 93% of institutional entitlements taken up. This robust support underscores confidence in Amplitude’s strategic direction and growth prospects.
Funding Growth in Domestic Gas Supply
The capital raised will primarily support the expansion of Amplitude’s East Coast Supply Project (ECSP). Key initiatives include advancing the Nestor prospect, a promising development close to existing infrastructure, and potentially restarting the Patricia Baleen project. These moves aim to bolster domestic gas supply to southeastern Australia, a region facing increasing demand and supply constraints. Managing Director Jane Norman highlighted the opportunity to leverage existing assets to deliver lower-cost gas where it is most needed.
Retail Entitlement Offer and Next Steps
Following the institutional phase, Amplitude will open a fully underwritten retail entitlement offer on 30 September 2025, targeting an additional $20 million. Eligible retail shareholders in Australia and New Zealand will have the opportunity to participate, with the offer closing on 9 October. Settlement and allotment of new shares from the institutional offer are expected in early October, with retail shares following mid-month. The company retains discretion to scale back retail applications if demand exceeds supply.
Strategic Positioning Amid Market Dynamics
Amplitude Energy’s portfolio includes offshore gas fields and onshore processing plants in the Otway and Gippsland Basins, positioning it well to meet tight East Coast gas market conditions. The equity raising strengthens the company’s balance sheet, enabling it to pursue accretive growth opportunities while maintaining exposure to both contracted and spot gas markets. Investors will be watching closely how these developments translate into operational progress and financial performance in the coming quarters.
Bottom Line?
Amplitude’s successful capital raise sets the stage for accelerated growth, but execution risks and market volatility remain key watchpoints.
Questions in the middle?
- Will the retail entitlement offer achieve full subscription and how might scale-backs affect shareholder dilution?
- What are the timelines and capital requirements for the Nestor prospect and Patricia Baleen restart?
- How will evolving East Coast gas market conditions impact Amplitude’s pricing and contract renewals?
