KUALA LUMPUR: Elridge Energy Holdings Bhd has today launched its prospectus for its listing on Bursa Malaysia's ACE Market that will raise up to RM203 million.
Elridge Energy's initial public offering (IPO), priced at 29 sen per share, involves a public issue of 350 million new shares and an offer-for-sale of 350 million existing shares.
Overall, the IPO involves a sale of up to 35 pet cent stake in the company that will be valued at RM580 million upon listing.
The company expects to be listed on Aug 22.
Elridge Energy specialises in the manufacturing and trading of biomass fuel products, with a focus on palm kernel shells and wood pellets.
Currently, the company's customers are based in Asia Pacific, mainly comprising Malaysia, Singapore, Indonesia and Japan.
Elridge Energy executive director and chief executive officer Oliver Yeo said the increasing global push for renewable energy sources has led to a rising demand for biomass fuel products, particularly in Asia Pacific.
"Malaysia, with its abundant natural forestry resources and a strong agricultural sector fueled by fertile soil and a tropical climate, stands out as a major supplier of biomass fuel products such as palm kernel shells and wood pellets.
"The positive market outlook underscores the potential for biomass fuel products, which are recognised for their energy efficiency and environmental benefits, to contribute substantially to global energy needs and environmental goals."
According to the Independent Market Research report by Providence, the palm kernel shells industry in Asia Pacific is forecast to grow at a compounded annual growth rate CAGR of 8.9 per cent from an estimated US$308.6 million (RM1.4 billion) in 2024 to US$366.1 million (RM1.7 billion) in 2026.
The wood pellets industry in Asia Pacific is forecast to grow by a further CAGR of 8.6 per cent, from US$10.6 billion (RM48.4 billion) in 2024 to US$12.5 billion (RM57.1 billion) in 2026.
"As a market leader in the production of high-quality biomass fuel products that reduce net greenhouse gas emissions, we are poised to capitalise on the burgeoning market for sustainable and eco-friendly renewable energy solutions," Yeo said.