Gore Street Energy Storage Fund PLC (LSE:GSF) is to raise £75mln through the placing of shares at 110p per share.
A subscription offer will also be available for retail investors while the whole share issue can be upscaled if the demand is there, the energy storage fund said.
The net proceeds of the share issue will be used to acquire and construct new projects in the company's pipeline. The fund’s investment manager has identified a pipeline of investments with a total project size of over 1.3 gigawatts in the UK and internationally, offering additional geographical portfolio diversification.
Following the initial issue of shares, the directors intend to implement a programme of subsequent issues of up to 750 million ordinary shares and/or C Shares to raise capital for further investment, as presaged last week.
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"As predicted since Gore Street's IPO [initial public offering] in 2018, the demand for energy storage has continued to grow exponentially in the UK, Ireland and internationally. The importance of energy security and the need to rapidly de-carbonise global economies is more important than ever before. Reflecting these trends, we are screening and executing ever larger transactions and have now built a portfolio with an aggregated capacity of over 700 MW [megawatts],” said Alex O'Cinneide, the chief executive officer of Gore Street Capital, the company's investment manager.
“Having closely analysed markets in North America and Western Europe over a number of years, we are delighted to have recently made our first investments in Germany and Texas, a transformative milestone for the growth and diversification of the company's portfolio. These more nascent markets offer significant potential for growth opportunities but also provide complementary revenue streams to those received from our assets in the UK and Ireland. These assets, along with the rest of Gore Street's portfolio, also deliver an essential energy infrastructure service in those geographies and help them to reach their climate goals.
“Meanwhile, the UK and Ireland continue to also offer significant potential opportunities for investment where Gore Street Capital has established itself as a pre-eminent investor. The proposed fundraise would enable us to execute on our ambitions for growth with the potential for investment in new acquisitions while continuing our solid track record of capital discipline for the benefit of our shareholders," he added.
Shares in Gore Street drifted 2p lower to 113p, 3p above the proposed issue price of the new shares.