KUALA LUMPUR: Green-energy company GPP Resources Bhd is offering 15.60 million new shares at 28 sen each ahead of its listing on the Leading Entrepreneur Accelerator Platform Market of Bursa Malaysia Securities Berhad in September this year.
It said on Wednesday the 15.60 million new shares which would be offered to sophisticated investors would account for 10.06% of the enlarged share capital.
Based on the enlarged share capital of 155.12 million shares, it is expected to have a market capitalisation of RM43.43mil upon listing.
GPP and its subsidiaries's core activities are related to biomass by using oil palm trunks to generate renewable energy.
Of the RM4.37mil to be raised from the issuance of the new shasres, it plans to use RM1m to purchase new machinery and equipment, RM1.32mil for working capital and RM500, 000 for research and development. The remaining RM1.55mil would be to defray listing expenses.
GPP executive chairman Tan Tiam Aik said the company would increase the automation processes and also expand the range of products.
“These machinery and equipment are expected to increase automation, improve production efficiency and gradually increase our annual production capacity (for oil palm trunks products segment) from 20, 100 cubic metres to 30, 000 cubic metres, ” he added.
Commenting on the renewable energy business segment, Tan said its subsidiary, Green Energy Resources (M) Sdn Bhd will develop biogas plants which use various types of biomass such as palm oil mill effluent, synthetic gas, food waste and animal manure as feedstock to produce renewable energy.
“Such development enables us to offer a wider range of products to our customers (apart from the palm oil industry) as well as to tap into a wider market, thus allowing us to further grow our business and expand our revenue stream, ” he added.
TA Securities Holdings Bhd is the adviser and placement agent for GPP's listing.
Qwantum Capital Sdn Bhd, formerly known as Salihin Capital Sdn Bhd, is the financial adviser for the LEAP Listing.