KUALA LUMPUR: Shares in Elridge Energy Holdings Bhd opened 17.24% higher on its trading debut on the ACE Market of Bursa Malaysia, following an initial public offering (IPO) that raised RM101.5mil.
The share started trading at 34 sen apiece, a five sen increase over its IPO price of 29 sen a share.
As at 10am, the counter stood at 37.5 sen a share, off an intramorning high 38.5 sen, after 186.1 million had changed hands.
Based on an issue price of 29 sen per share and an enlarged share capital of two million shares, Elridge Energy had a market capitalisation of RM580mil upon listing.
Elridge Energy is an investment holding company, with wholly owned subsidiary Bio Eneco Sdn Bhd specialising in manufacturing and trading of biomass fuel products, with a focus on palm kernel shells and wood pellets.
According to executive director and chief executive officer Oliver Yeo, the funds raised from the IPO will go towards enhancing capabilities, expanding its regional footprint and creating substantial value for the stakeholders.
Of the total proceeds, RM47mil will go towards land acquisition and building a new factory and warehouse in Kuantan, RM21.1mil to machinery and equipment, RM27mil for working capital and RM6.3mil to finance listing expenses.
