KUALA LUMPUR, Elridge Energy Holdings Bhd (EEHB), on route to a listing on Bursa Malaysia's ACE Market on Aug 22, aims to raise RM101.5 million through its initial public offering (IPO). EEHB 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. Executive director and chief executive officer Oliver Yeo said the listing exercise is crucial for the company to enhance capabilities, expand its regional footprint and create substantial value for the stakeholders. "It will enable us to tap into a new customer base, further strengthening our position as a leader in the renewable energy sector, and allow us to build a hub for biomass fuel products," he said in his opening speech at the launch of the company's prospectus today. "Based on an issue price of 0.29 sen per share and an enlarged share capital of two million shares, EEHB will have a market capitalisation of R M580 million upon listing,' a separate statement said. "An offer for sale of 350 million existing ordinary shares will be made available to selected investors by way of private placement," it said. The statement said of the total proceeds, RM47.0 million will go towards land acquisition and building a new factory and warehouse in Kuantan, Pahang; RM21.1 million to buy machinery and equipment; RM27 million for working capital and RM6.3 million to finance listing expenses. On its Kuantan expansion plans, executive director and finance director Salihudin Mohd Razali said this will raise its annual capacity by about 240,000 tonnes. The company selected Kuantan because of its location. It is also near the port, which will make exporting its products easier, Salihudin said. It also plans to expand production at Pasir Gudang, Johor, and Lahad Datu, Sabah, bringing the investment cost for all three locations to RM23.49 million. Source: BERNAMA News Agency