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(Alliance News) - Kibo Energy PLC on Wednesday noted the start of trading in London by subsidiary Mast Energy Developments PLC, whose shares were trading up 17% on their debut.
Mast raised GBP5.5 million from its initial public offering on the London Main Market.
It had a market capitalisation of about GBP23 million based on its IPO price of 12.5 pence per share, up from its initial target of GBP20 million. Mast was quoted at 14.67p on Wednesday morning, up 17% from the IPO price.
Mast placed 47.2 million shares with institutional and retail investors, 25% of its new total of 188.6 million. Kibo will retain a 55.4% stake.
Shares in Galway, Ireland-headquartered Kibo Energy were heading in the opposite direction to its newly listed subsidiary early Wednesday, down 17% to 0.42p.
Mast will use the IPO funds to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator.
"I am delighted with the strong support that Mast has received from key institutions and retail investors, which has valued this business at GBP23 million on admission," said Kibo Chief Executive Louis Coetzee.
"As Mast's majority shareholder, with an interest of 55.42%, this crystallises the value of this component of our company and also provides us with significant upside to the UK flexible energy industry. We believe that Mast is entering a period of high impact news flow and we look forward to updating the market on this in due course."
By Will Paige; willpaige@alliancenews.com
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