Australia-listed Alpha HPA has successfully completed a fully underwritten A$225-million equity raising to support the construction and commercialisation of Stage 2 of its HPA First project.

The capital raising was completed through a two-tranche placement of new fully paid ordinary shares to existing and new institutional investors. The company will also offer existing eligible shareholders the opportunity to participate in a non-underwritten share purchase plan.

Alpha said there was strong demand from existing shareholders, with the placement being cornerstoned by the National Reconstruction Fund Corporation (NRFC), as well as substantial shareholders AustralianSuper and Orica.

The NRFC invested A$75-million in the placement, securing a pro-forma shareholding of about 6.9%. The company said allocations were structured to provide, where practicable, pro-rata participation to existing institutional, professional and sophisticated shareholders.

Proceeds from the capital raising, together with existing cash of about A$39-million, will be used primarily to support the construction and commercialisation of Stage 2 of the HPA First high-purity alumina (HPA) project.

Following completion of the placement, Alpha will have access to up to A$704-million in existing available funding lines to support the commercialisation of Stage 2 and other corporate activities, including expanding Stage 1 capacity.

The latest funding round builds on existing government support of up to about A$497-million, including Northern Australia Infrastructure Facility and Export Finance Australia facilities, a Queensland Investment Corporation royalty investment and state and federal government grants.

“The successful A$225-million equity-raising marks another important milestone in the Alpha story," said Alpha MD Rob Williamson. "We are delighted to welcome the NRFC as substantial shareholders in the company – their investment is a strong endorsement of the company’s strategic importance as the largest single site manufacturer of HPA globally.

“The strong demand from both existing shareholders, including substantial shareholders AustralianSuper and Orica Limited, as well as a number of new domestic and global institutional investors was well received.

“As we enter the supply chain for semiconductors, we look forward to unlocking more capacity at Stage 1 and maintaining the significant momentum in the Stage 2 project execution as we move closer to establishing Australia’s first, sovereign, large scale, commercial capability to manufacture HPA and related products.”

Alpha’s HPA First project is focused on producing HPA for use in advanced technologies, including semiconductors and battery materials. The Stage 2 development is expected to significantly increase production capacity and strengthen the company’s position in global specialty materials markets.