PARIS, FRANCE: Waga Energy, renowned for transforming landfill gas into Renewable Natural Gas (RNG), has announced a triumphant capital increase of €52 million. The accelerated bookbuild offering, which was initially targeted at a minimum amount, saw a 15% increase due to overwhelming demand from both international and French investors.
The fresh capital, raised through the issuance of 3,939,394 new shares priced at €13.20 each, is earmarked for bolstering Waga Energy’s rapid international growth. The company’s CEO, Mathieu Lefebvre, expressed gratitude towards the investors, including longstanding shareholders and newcomers, for their trust and support. Lefebvre highlighted the company’s operational prowess and recent milestones, such as the launch of production units across Spain, Canada, and the United States.
The funds will primarily finance the expansion in the strategic US market, where Waga Energy has enjoyed considerable commercial success. This move is expected to expedite value creation for stakeholders and contribute to the global fight against climate change by reducing methane emissions and increasing biomethane production.
The transaction details reveal that the gross proceeds stand at €52 million, with net proceeds approximately €50.2 million, representing about 19.2% of the pre-offering share capital. The offering’s completion will enhance the company’s free-float and is set to occur on March 25, 2024, pending standard conditions.
Waga Energy’s ambitious plan involves utilizing the net proceeds alongside other non-dilutive financing methods to meet the capital expenditure for new projects. This strategy aligns with the company’s goal to achieve a revenue target of €200 million by 2026.
The offering’s final terms indicate a slight discount on the new shares, reflecting the company’s strategic pricing decision to facilitate the capital increase. Post-offering, Waga Energy’s share capital will rise to €245,031.44, translating to 24,503,144 shares at a nominal value of €0.01 each. Shareholders who did not participate in the offering will see a dilution in their holdings, exemplified by a shareholder with a 1% pre-offering stake now holding 0.8%.
This capital boost positions Waga Energy at the forefront of the RNG industry’s expansion, with a clear trajectory for continued growth and a commitment to sustainability.
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