Invictus completes a US$10m capital raising, lists on VFEX

STAFF WRITER

 

Oil and gas exploration company Invictus Energy, which has its primary listing on the Australian Stock Exchange, is set to list on the Victoria Falls Stock Exchange (VFEX) Friday following the completion of a US$10m  capital raise from institutional local investors, Business Times can report.

 

According to Invictus, the funds raised  would be utilized to advance the project’s development in Zimbabwe.

Mangwana Capital oversaw the institutional placement, and Mutapa Investment Fund underwrote US$5m  of it, showing the government’s and a number of other significant investors’ long-term commitment for the project.

“We are thrilled with the overwhelming support from Zimbabwean institutional investors, particularly the Mutapa Investment Fund as our future partners in the project on behalf of the Republic of Zimbabwe,” Invictus managing director Scott Macmillan said.

He added:  “Mutapa’s investment is a strong endorsement of the Cabora Bassa Project and recent significant gas-condensate discoveries delivered from Mukuyu-2.

“Further support of institutional investors and the Mangwana Opportunities Fund strengthens our investor base and in-country presence.

“Our partnership with Mangwana continues to assist the company advance key objectives in the country and provide exposure for local investors to our world class Cabora Bassa Project.

“The Government of Zimbabwe’s commitment, through the PPSA, provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful phased and ultimate full-field development of Cabora Bassa. Our farmout process to secure a strategic partner continues to progress well with active discussions advancing with multiple parties.”

Mutapa CEO, John Mangudya weighed in saying: “The Government of Zimbabwe’s commitment, through our support for Invictus and the negotiations of the Petroleum Production Sharing Agreement, provides a solid foundation for a transparent and stable operating environment, which is crucial for the successful development of this world-class asset through our future partnership.”

“The Mutapa Investment Fund’s participation in the development of the Cabora Bassa Project has the potential to generate substantial returns while delivering sustainable benefits to the nation for generations to come.” “We are confident that our support for Invictus and the project lays the foundation stone for a vibrant and productive oil and gas sector that will contribute to the creation of jobs, generation of exports and delivery of energy security to Zimbabwe.”

 

Ben Mbanga, Managing Director of Mangwana Capital, expressed his company’s excitement about helping Invictus accomplish their objectives in Zimbabwe.

 

“Mangwana is pleased to have led this strategic investment process. Our fund investors comprise a broad range of Zimbabwe’s institutional investors and our Investment in Invictus will ensure that they share in the success of the Company. “The Cabora Bassa project and Mukuyu discovery is a potential game changer for the country which can bring about significant economic benefits and energy security to the entire region. “We look forward to supporting Invictus to achieve their goals in Zimbabwe and furthering our partnership with them.”

 

Invictus offered to place US$10m through the issuance of 151 515 152 shares at a share price of AU$0,10 at an AU$/US$ foreign currency exchange rate of US$0,66.

Under the placement, participants will receive an option to subscribe for one share for every four shares subscribed for, exercisable at AU$0,30 with a two-year option period.

Securities issued will facilitate a secondary listing on the VFEX through issuance of Zimbabwe Depository Receipts to support local liquidity and trading.

The placement will be carried out in two tranches. Tranche one will comprise the issue of approximately 98,5m new shares to raise US$6,5m, with US$1,5 million placed immediately to be followed by a further US$5m, expected to be finalised week commencing August 12, 2024.

The second tranche will comprise approximately 53m  new shares to raise US$3,5m on the same terms as tranche one and shareholder approval would be sought at an extraordinary general meeting next month.

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