Global law firm Ashurst has advised Alpha HPA Limited on a major fundraising via a fully underwritten A$175 million two-tranche placement, a non-underwritten share purchase plan and a A$400 million approved debt facility. The equity raising and government debt facilities, together with government grants, are part of a broader funding package Alpha is progressing to fully fund construction of Stage 2 of Alpha’s HPA First Project.
Alpha is an ASX listed, Australian-based company that produces ultra-high purity aluminium (HPA) products, a critical material for high technology growth sectors and the global energy transition. Alpha’s HPA First Project will be Australia’s first large-scale facility that aims to create 10,430 tonnes of bespoke aluminium products per annum.
Under the two-tranche placement, Alpha has issued approximately 194 million new shares at $0.90 per share raising $175 million. Due to strong market demand from existing shareholders and high-quality new domestic and global institutional investors, the placement was upsized to A$175 million from A$120 million.
Alpha has also undertaken a non-underwritten share purchase plan (SPP) to enable eligible shareholders to participate in the equity raising. Proceeds raised from the SPP will be used to commence Stage 2 HPA First Project execution.
Ashurst is also advising Alpha on the entry into credit-approved facilities of A$400 million (including a A$80 million cost overrun facility) from Government agencies, the Northern Australian Infrastructure Facility, and Export Finance Australia as part of the Australian Government’s Critical Minerals Facility.
Partners Murray Wheater and Chris Redden said:
“We are very proud to have assisted Alpha HPA with its equity capital raising and debt facilities to fund the construction of their Stage 2 Facility. We look forward to watching Alpha’s continued growth as it establishes Australia’s first, large-scale commercial capability to manufacture high purity alumina to support key technology growth sectors and the global energy transition.”
The Ashurst team was led by partners Murray Wheater (Corporate Transactions) and Chris Redden (Projects & Energy Transition), who were assisted by partner Patricia Paton, counsel Peter Moh, senior associate Alex McLeish, and associates Josh Hanegbi, Gerard McGookin, Alicia Un, and Eric Nelson (Corporate Transactions); and associate Nathan Feiglin (Competition) as well as Nina Fitzgerald and senior associates Elizabeth Arms and Lachlan Wright and associate Ben Parry (Intellectual Property); and associates Jonathan Chew and Lauren Howe (Projects & Energy Transition).
