BIOENERGY-based Elridge Energy Holdings Bhd has inked an underwriting agreement with KAF Investment Bank Bhd to pave the way for the company’s initial public offering (IPO) on the ACE Market of Bursa Malaysia.
Elridge’s IPO entails a public issuance of 350 million new shares comprising 80 million shares made available to the public via balloting; 20 million shares for eligible directors, employees as well as individuals who have contributed to the group’s success and 250 million shares for Bumiputera investors.
Additionally, an offer for sale of 350 million existing Elridge shares will be made available to selected investors by way of private placement.
An investment holding company, Elridge via its wholly-owned subsidiary Bio Eneco Sdn Bhd specialises in the manufacturing and trading of biomass fuel products with a focus on palm kernel shells and wood pellets.
“KAF IB’s extensive experience and strong track record in managing successful IPOs will be instrumental in guiding Elridge through this exciting transformative phase,” its executive director and CEO Oliver Yeo pointed out.
“The growing demand – both locally and internationally – for high quality and certified biomass fuel products as a result of the trend towards sustainable energy generation as well as the urgent need for countries to address climate change would augur well for Elridge when it debuts on the local bourse in August this year.”
Added Yeo: “This positive market outlook underscores the potential for biomass fuel products to contribute substantially to energy needs and environmental goals. Coupled with the current robust performance of the local indices, the timing is just right.”
The listing exercise is expected to enable Elridge to leverage the growing demand and market opportunities in order to drive sustainable value creation for its shareholders and stakeholders.
“We intend to expand our production capacity for palm kernel shells and set up three new factories respectively at Pasir Gudang (Johor); Kuantan (Pahang); and Lahad Datu (Sabah),” enthused Yeo.
“We are confident that this IPO will unlock new opportunities by allowing us to enhance our production capabilities, invest in cutting-edge technologies and expand our market reach. By tapping into the growing market for biomass fuel products, we aim to drive long-term growth and contribute to a greener, more sustainable future.”
KAF IB is the principal adviser, sponsor, underwriter and placement agent for Elridge’s IPO. – July 16, 2024
