The company said it could now "fully focus on continuing [its] growth journey and exploiting the future potential for biogas."

By Joseph Murphy

Sweden's Scandinavian Biogas is looking to raise 326mn Swedish koruna ($29mn) from a direct share issue, in order to fund ongoing growth, the company said on October 5.

Scandinavian Biogas' board of directors decided to issue 13.045mn shares at a price of 25 koruna apiece. The piece was determined through an accelerated bookbuilding procedure carried out by ABG Sundal Collier, which worked as sole global coordinator and sole bookrunner.

A number of investors took part, the company said, including TronderEnergi Vekst Holding, Bengtssons Tidnings and other existing investors, including CEO Martti Vikkula and chairman of the board, Anders Bengtsson. The issue is subject to approval at an extraordinary general meeting, due to take place on October 27.

"I am very pleased that through this capital raise we give Scandinavian Biogas good conditions for continued growth in Scandinavia and northern Europe," Bengtsson said in a statement. "The deviation from the shareholders' preemptive rights is not a decision taken lightly, but the possibility to reach a time efficient solution under prevailing volatile market conditions with a substantial premium of around 62% was a strong reason."

"Now we can fully focus on continuing our growth journey and exploiting the future potential of biogas," he said.

Scandinavian Biogas owns two biogas production plants in Sweden, one in Norway and another in South Korea.