SHARIAH-COMPLIANT Elridge Energy Holdings Bhd debuted today (Aug 22) on the ACE Market of Bursa Malaysia at 34 sen or 17.2% premium over its initial public offering (IPO) price of 29 sen/share.
On the opening bell, the bioenergy group saw a total of 24.97 million shares were traded, a reflection of investors’ confidence in the company’s growth prospects and its dedication to sustainable energy solutions.
“We are excited to continue our mission of delivering sustainable energy solutions and driving innovation in the biomass fuel industry,” commented Elridge’s CEO Oliver Yeo soon after Elridge’s successful listing exercise.
Through its wholly-owned subsidiary Bio Eneco Sdn Bhd, Elridge has established itself as a leading provider of biomass fuel products, particularly palm kernel shells and wood pellets.”
The group serves a diverse range of clients across Malaysia, Singapore, Indonesia, and Japan, playing a crucial role in the region’s transition to cleaner energy sources.
According to the independent market research report by Providence, there is a growing demand for biomass fuel products, especially palm kernel shells and wood pellets in Japan.
Currently focusing on renewable energy sources, the Japanese government aims to achieve carbon neutrality by 2050 as outlined in the Sixth Strategic Energy Plan released by the country’s Economy, Trade and Industry Ministry (METI). This has led to a significant increase in demand for sustainable biomass fuels.
Yeoh further expects Elridge’s successful debut to attract significant interest from both local and international investors, thus positioning the group for accelerated growth.
“The group plans to leverage this momentum to expand its operations, enhance its product offerings and contribute to the global effort to combat climate change through sustainable energy solutions,” he enthused.
With an issue price of 29 sen per share and an enlarged share capital of 2 billion shares, Elridge has a market capitalisation in excess of RM580 mil.
The group’s IPO raised a total of RM101.5 mil in gross proceeds from the public issue portion.
Elridge will allocate 46.31% or that sum or RM47.0 mil for land acquisition and the construction of a new factory and warehouse in Kuantan while 20.82% or RM21.1 mil will be put aside for the purchase of new machinery and equipment.
Additionally, 26.7% (RM27.1 mil) of the proceeds will be utilised as working capital while the remaining 6.21% (RM6.3 mil) will be allocated to cover listing expenses.
KAF Investment Bank Bhd served as the principal adviser, sponsor, underwriter, and placement agent for Eldridge’s IPO.
At3.08pm, Eldridge was up 8.5% or 29.31% to 37.5 sen with 243.72 million shares traded, thus valuing the company at RM750 mil. – Aug 22, 2024
