IPSA.L Regulatory News (IPSA)

20 Sep 2005 08:00

IPSA Group PLC20 September 2005 IPSA Group Plc20 September 2005 IPSA Group Plc Placing and Admission to AIM IPSA Group Plc ('IPSA or the 'Company'), the UK-based company established todevelop, own and manage power generation plants in Southern Africa, arrives onLondon's AIM market today. This follows the recent completion of a placingwhich raised £8 million before expenses. IPSA has acquired a combined heat and power unit in Lancashire, UK and will shipit 6,000 miles to Newcastle, KwaZulu Natal in South Africa to provide heat andelectricity to a local company. The 18 MW combined heat and power unit will bereconstructed as the first of three electricity generation projects the companyhas so far planned in Southern Africa. IPSA arrives on AIM following an £8 million institutional fund raising at 27pper share, valuing it at £14.75 million. The Company is managed by a team with an established track record in developingpower projects worldwide (including Bolivia, Kazakhstan and Argentina) and withrelevant experience in the electricity sector in South Africa. IPSA has two principal business objectives: • the development and ownership of power generation facilities in Southern Africa; and • in due course, the purchase, refurbishment and operation of power plants in the region. IPSA Chief Executive Peter Earl said: "We have no doubt that with the forecastshortfall in generating capacity in the near future, there will be abundantopportunity to develop new power plants in the region." Noble & Company Limited is the Company's Nominated Adviser and Broker. Placing Statistics Placing Price 27pNumber of new ordinary shares being issued under the Placing 29,629,630Percentage of enlarged issued share capital subject to the Placing 54.2 per cent.Number of ordinary shares in issue on Admission 54,629,630Gross proceeds of the Placing £8.0mNet proceeds of the Placing to be received by the Company £7.2m Copies of the prospectus will be available free of charge at the offices ofNoble & Company Limited, 120 Old Broad Street, London, EC2N 1AR during normalbusiness hours on any weekday (except public holidays) for a period of one monthfrom the date of Admission. For further information contact:Peter Earl, Chief Executive Officer, IPSA Group Plc: +44 (0) 20 7793 7676Adam Westcott, Noble & Company Limited: +44 (0) 131 225 9677Allan Piper, First City Financial Public Relations: +44 (0) 20 7436 7486 +44 (0) 7050 203 304 The following article was released on 19 September in relation to the Admission: PRESS RELEASE New AIM arrival targets spiralling power demand in Southern Africa September 19, 2005: We've all heard of taking coals to Newcastle. New AIMarrival IPSA Group plc is going one step further by taking a whole power plant. IPSA, which arrives on AIM tomorrow, will dismantle a power plant in Bury,Lancashire, and ship it 6,000 miles to Newcastle, KwaZulu Natal in South Africa- a dramatic demonstration of the spiralling demand for more electricity in theregion. The 18 MW combined heat and power unit will be reconstructed as the first ofthree electricity generation projects the company has so far planned in SouthernAfrica. IPSA arrives on AIM following an £8 million institutional fund raising at 27pper share, valuing it at £14.75 million. The shares start trading on TuesdaySeptember 20. The company has been established to develop, own and operate power plants inSouth Africa and neighbouring countries against a backdrop of acceleratingdemand and predicted shortfalls. In South Africa itself, demand for electricityis expected to outstrip supply by the end of 2006. IPSA Chief Executive Peter Earl said: "We have no doubt that with the forecastshortfall in generating capacity in the near future, there will be abundantopportunity to develop new power plants in the region." In South Africa, where state-owned Eskom currently generates 95% of theelectricity supply, it is now government policy that 30% of new capacity overthe next five years should come from independent producers such as IPSA -equivalent to more than 1,600 MW. Countries such as Botswana, Lesotho and Swaziland are traditionally reliant onSouth Africa supplying a significant proportion of their electricity demand, andare likely to be hit by its shortfalls. The £8 million placing was handled by IPSA's broker and NOMAD, Noble & Co Ltd. For further information contact: Peter Earl, Chief Executive, IPSA Group PLC: 020 7793 7676Elizabeth Shaw, Chief Operating Officer, Group IPSA PLC: 020 7793 7676Adam Westcott, Noble & Company Ltd: 0131 243 0459Allan Piper, First City Financial Public Relations: 020 7436 7486 07736 064 982 Background follows: IPSA Group plc - background and strategy IPSA has been established to develop, own and manage power generation plants inSouthern Africa. Led by Chief Executive Peter Earl, IPSA is managed by a teamwith an established track record in developing power projects worldwide(including Bolivia, Kazakhstan and Argentina) and with relevant experience inthe electricity sector in South Africa. IPSA has offices in London and Durban. IPSA has two principal business objectives: • The development and ownership of power generation facilities in Southern Africa • In due course, the purchase, refurbishment and operation of power plants in the region Approximately 32% of South Africans do not have access to electricity at home,while peak demand for electricity in South Africa is forecast to exceed existingpower capacity by the end of 2006. The government is committed to increasingelectricity output and has announced the country needs to boost capacity by5,000 MW. It is now government policy that 30% of all new power capacity constructed overthe next five years should be met by independent suppliers. IPSA has initially targeted specific projects in South Africa and Swaziland, andhas three active projects under varying stages of development. They are allbased on building "inside the fence" combined heat and power plants with anominal capacity of up to 100 MWe, primarily gas-fired and producing both heat/steam and electricity for dedicated industrial users. The first plant will supply a synthetic rubber manufacturer, Karbochem, atNewcastle in KwaZulu Natal, South Africa. Key agreements are in place for steamsales and gas supply. The Directors believe that in the medium term there will be opportunities forthe sale of power to Eskom from newly developed power plants, the development ofpower "islands" serving large industrial consumers of electricity, theacquisition of existing power plants, and the use of LNG in power generation. The National Electricity Regulator, which regulates electricity prices in SouthAfrica, has indicated it will pass on to the consumer the increased costs ofcleaner electricity. In October 2004 Eskom's electricity tariff was increased by4.1% for 2005 compared with a 2004 increase of 2.5%. South Africa's GDP grew by3.5% in 2004 and is forecast to grow by an estimated 4.0% in 2005 and 2006. The Company has raised £8.0 million before expenses through a placing of29,629,630 new shares at 27p per share. It values IPSA at £14.75 million. This information is provided by RNS The company news service from the London Stock Exchange