Lynas Rare Earths has announced a fully underwritten equity raise of approximately A$750m ($489.2m), alongside the release of its full-year 2025 results.
The capital raise is aimed at strengthening the company's balance sheet and providing financial flexibility to pursue its Towards 2030 strategy.
The new shares will be offered at a 10% discount to the last traded price of A$14.73 on 27 August 2025 and an 8.6% discount to the volume-weighted average price of A$14.5 over the preceding ten trading days.
Approximately 56.6 million new fully paid ordinary shares, representing around 6.1% of Lynas' existing shares on issue, will be made available.
The placement is targeted at institutional investors in select jurisdictions, with Barrenjoey Markets and Macquarie Capital acting as joint lead managers, underwriters and bookrunners.
New shares issued under this placement are expected to settle on 2 September 2025, with trading on the Australian Securities Exchange (ASX) to commence the next business day.
Lynas Rare Earths CEO and managing director Amanda Lacaze said: “Towards 2030 sets out our plan to optimise performance from the Lynas 2025 capital investments and to pursue new growth opportunities. The equity raising provides Lynas with the balance sheet strength to pursue a strong growth agenda.”
“The rare earths market is rapidly evolving, and we need to move at pace to maximise value from existing assets and create further value from market opportunities. This includes continuing to grow our operations to serve the customers, downstream players and governments who seek to partner with Lynas to quickly establish larger and more resilient outside China supply chains for rare earths materials.”
In conjunction with the placement, Lynas is also offering a non-underwritten share purchase plan (SPP) to its eligible shareholders, aiming to raise up to an additional A$75m.
Eligible shareholders will have the opportunity to purchase up to A$30,000 worth of new shares per shareholder, free of transaction and brokerage costs, at the same issue price of A$13.25 per share.
The SPP shares will rank equally with existing Lynas shares from the date of issue.
Lynas reserves the right to scale back applications or accept oversubscriptions at its discretion, potentially altering the final amount raised through the SPP.
In a separate development, Lynas Rare Earths has signed a preliminary agreement with Menteri Besar, the investment entity of the Kelantan State Government in Malaysia, to provide mixed rare earth carbonate.
This initial, non-committal pact lays the groundwork for more detailed discussions and is crucial for fostering the rare earths market in Kelantan.
