Alpha Namibia Industries Renewable Power Limited (ANIREP) this week announced the results of the rights offer as approved by shareholders on 3 November and closed on 4 December 2023.
ANIREP disclosed that a total of N$557,138,096.30 has been received, which is equivalent to a total of 70,523,809 rights offer shares being subscribed for out of the total 71,403,185 rights offer shares on offer. This translates to a subscription rate of 98.77 percent.
Managing Director, Iyaloo Nangolo talked to Observer Money about the money that was raised through the offer and the company’s plans going forward.
Observer Money (OM): Alpha Namibia Industries Renewable Power Limited (ANIREP) has announced the results of the rights offer as approved by shareholders on 3 November 2023 and closed on 4 December 2023. What is the company going to do with the N$557m that was raised?
Iyaloo Nangolo (IN): The initial capital raised by ANIREP as a CPC, in an amount of N$167.1 million, was primarily used to acquire an IPP platform and the largest solar PV IPP, EPC and O&M Company in Namibia in 2020 for a combined total of N$144.5 million.
It was imperative to raise further capital by listing of rights offer shares have effect and commence trade on 5 December 2023 will issue 71,403,185 ordinary shares at a price of N$7.90 per rights offer share, with a ratio of 423 rights offer shares for every 100 ordinary shares held as of 10 November 2023. The rights offer closed duly on 4 December 2023 at which stage a total of N$557,138,096.30 was raised for the sole purposed of support ANIREP pipeline and grow strategy, this translate into a 99 percent endorsement of ANIREP pursuits at market place by our shareholders
OM: What is the company going to do with the N$557m that was raised?
IN: According to the notice, the rights offer is expected to provide ANIREP with the necessary capital to acquire and develop several renewable energy projects. The projects include Aussenkjer Solar One Namibia, Otjiwarongo Expansion, and Dundee Precious Metal Tsumeb, which collectively require an estimated N$415 million equity investment. Furthermore, ANIREP is also exploring further potential acquisition targets, with a view to adding 25MW to its existing capacity, with an estimated equity requirement of N$123 million.
OM: What was the importance of the rights offer?
IN: The importance of the rights offer cannot be under-stated in company endeavours to scale up and realised its long term sustainable objectives and mission. The proceeds will be put to use as detailed in the circular for ANIREP to reach its ambitions as a listed renewable energy generator of record in Namibia and sub Saharan Africa.
OM: Does the subscription rate of 98.77 percent, show that investors see ANIREP as an attractive investment?
IN: Indeed, listed companies rely on market signals from their investors on whether or not they are forging a desired trajectory. The positive results tell ANIREP that 99 percent of its investors are prepared to walk the journey towards success with ANIREP. It is a welcome show of confidence and indeed a showcasing of Namibia as supreme destination for renewable and clean energy investments.
OM: What are some renewable projects that your company is invested in?
IN: Our company has three verticals of business; our Independent Power Producer (IPP) has already invested in Otjiwarongo Solar PV, Grootfontein Solar PV and numerous corporate and industrial installation in Namibia bring our Independent Power Producer (IPP) portfolios more than 13,34MWp. There is also 25MWp Khan Solar PV plant which is a working in progress, soon to be added to this portfolio. In the short term, this IPP portfolio, is anticipated to expand to over 94.8 MWp.
The second vertical is Engineering Procurement and Engineering (EPC) is a leader by far when comes to EPC of Solar PV in Namibia. The EPC company recently successfully completed 25MWp Omburu Solar PV for NamPower and expect to bring the 25MWp Khan Solar PV plant to a successful completion also for NamPower next year. Coupled to this Operation and Maintenance of the Solar PV generation plants with multitude of clients around Namibia, from corporates to utility clients.
The rights offer has garnered support from shareholders of the company’s shares, signalling confidence in ANIREP’s future prospects. The funds raised from the rights offer will also be used to optimize ANIREP’s capital structure, add own developed capacity of 81.8 MWp and explore potential acquisition opportunities to add 25MW to its existing capacity.
OM: What is the worth of these investments?
IN: The expansion and developments that the company is pursuing estimated value are given in Circular clause 2.3.3.4 with an expected combined project value of N$1,438,000,000. These investments are expected to perform in line with our IRR targets as set in Clause 4.1.4 of CPI plus 6,5 percent of lower end to CPI plus 10,5 percent on higher end. These targets are shared in the market place in order to meet and company NAV performance these targets.
OM: Talk about your financial results?
IN: ANIREP’s year ends is 28 February and results are published in May of the same year as per NSX rules. As for the year ended 28 February 2023 ANIREP posted a befitting results as an established a Namibian owned and operated combined IPP/EPC/O&M platform, which generated EBITDA of N$53.2 million and earnings after tax of N$19.9 million (before tax N$28.7 million).
OM: Anything else that you wish to add?
IN: Namibia was the first country in the world to include the protection of the environment in our constitution. And takes protection of our environment very seriously and by focusing on green energy we are following that mandate by reducing carbon emissions and ensuring that the generations after us have a clean and beautiful country to inherit.
Namibia is endowed and blessed with an abundance of natural resources and it is important that we use those resources responsibly and sustainably. The sun is one of our greatest resources and it is time for us to use it to uplift our nations masses by giving them access to sustainable and competitively priced electricity through clean energy. Our local generation capacity can only grow through investments such as what ANIREP shareholders have demonstrated their trust in. The company aims to further increase its capacity by 81.8MWp by the 2025/2026 year-end, with a long-term goal of surpassing 200MW. This growth aligns with Namibia’s renewable energy targets, aiming to reach 760MW by 2030 revealed in a circular to shareholders recently.
Only through this type of initiatives can Namibia can win itself off its heavy reliance on our neighbours for a significant portion of our power. By focusing on producing our own renewable energy, in time we can become self-reliant for our energy needs, with the prospect of eventually exporting power to our neighbouring countries as well.
