Ahmad Fazlee Aziz, co-head and director of corporate finance of KAF Investment Bank (left), and Oliver Yeo, executive director and CEO of Elridge Energy, at the underwriting signing ceremony
KUALA LUMPUR: Elridge Energy Holdings Bhd has inked an underwriting agreement with KAF Investment Bank for its initial public offering (IPO), en route to an August listing on the ACE Market of Bursa Malaysia.
In a statement, the group said the IPO shall entail a public issuance of 350 million new shares, comprising 80 million shares made available to the Malaysian public, 20 million shares to be allocated to eligible directors, employees as well as person who have contributed to the success of the group, as well as 250 million shares allocated to Bumiputera investors, identified and approved by the Ministry of Investment, Trade and Industry.
There will also be an offer for sale of 350 million existing shares by way of private placement.
Elridge Energy via its subsidiary company, Bio Eneco Sdn Bhd, specialises in the manufacturing and trading of biomass fuel products, with a focus on Palm Kernel Shells (PKS) and Wood Pellets.
Executive director and CEO Oliver Yeo said the growing demand for high quality and certified biomas fuel products augurs well for the company as it makes its debut on Bursa Malaysia.
"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,” he added.
Following the fundraising, he said the group intends to expand its production capacity for palm kernel shells by setting up three new factories at Pasir Gudang, Johor; Kuantan, Pahang; and Lahad Datu, Sabah, respectively.
"We are confident that this IPO will unlock new opportunities, allowing us to enhance our production capabilities, invest in cutting-edge technologies, and expand our market reach," he said.
KAF Investment Bank is the principal adviser, sponsor, underwriter and placement agent for the IPO.
