(Alliance News) - Kibo Energy PLC said on Thursday it was proceeding with a proposal for an initial public offering of its "spinout" named Ultimate Sustainable Energy Ltd.
Ultimate Sustainable Energy consists of Kibo's renewable and clean energy generation projects.
The Galway, Ireland-based energy company said it will seek admission to the Alternative Investment Market of the London Stock Exchange for the IPO in the fourth quarter or first quarter next year.
Kibo expects to raise about GBP7 million to GBP10 million through the IPO to develop its portfolio of renewable and clean energy generation projects.
The company expects to hold a significant majority interest of around 75% in Ultimate Sustainable Energy, maintaining a strategic interest.
Projects currently earmarked for inclusion in the IPO portfolio are waste-to-energy projects in South Africa and the UK, and all biofuel projects, inclusive of utility-scale projects in Tanzania, Botswana and Mozambique.
"This is an exciting time for the growth of Kibo Energy, with this IPO unlocking the true value and potential of the company's sustainable, renewable energy assets," Kibo Chief Executive Louis Coetzee said.
"The market opportunities, government support and technical innovation in both South Africa and the UK are evolving and are at the ideal stage to position USE, and thus Kibo, as influential innovators in the renewable/clean baseload energy generation sector," Coetzee said.
Kibo Energy shares were 0.9% higher at 0.17 pence each in London on Thursday morning. In Johannesburg, the stock was up 40% at ZAR0.07
By Artwell Dlamini; artwelldlamini@alliancenews.com
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Kibo Energy (KIBO)