London Stock Exchange welcomes Green & Smart Holdings plc
Green & Smart Holdings plc (AIM: GSH) is delighted to join AIM through the placing of 44,444,445 new shares at a price of 9 pence per share, having raised £4.0 million before costs and expenses. On Admission, the Group had a market capitalisation of £24.9 million.
Green & Smart is engaged in the Malaysian renewable energy sector. It is seeking to take advantage of Malaysian governmental policy towards increasing the production of electricity through renewable energy sources, by participating in the production of electricity through biogas power plants which convert the waste produced by palm oil mills. Key regulatory measures introduced by the Malaysian government include the establishment of a Feed-in-Tariff regime in Malaysia, under which power produced from biogas and other renewable energy sources attracts a premium to market price over a long term contract (typically 16 years in the case of biogas), along with the requirement for certain palm oil mills to provide for the capture of methane and other waste gases.
The Group has developed a strong pipeline of opportunities, both in the building and ownership of biogas power plants to produce electricity through the process of treating POME, as well as in contracting to develop biogas power plants for its Associated Companies, and has built relationships with some of Malaysia’s largest palm oil businesses.
The net proceeds will be used, amongst other things, to provide funding towards the construction of two biogas power plants to be owned and operated by the Group and for general working capital purposes.
Mr. Saravanan Rasaratnam, Group Managing Director of Green & Smart, said: “We are delighted with the support shown by both UK and Malaysian investors for our admission to AIM. The Malaysian Government’s aim of achieving the installation of Biogas facilities in all Palm Oil Mills in Malaysia by 2020, alongside their targets to increase the production of electricity from renewable sources, has created an opportunity for us to utilise our experience of over 30 years in waste water treatment and provide sustainable renewable energy solutions to the palm oil industry. We welcome our new shareholders, and look forward to updating them and the wider market as we develop our pipeline of projects and position Green & Smart as a leading Independent Power Producer in Malaysia.”
SP Angel Corporate Finance LLP is Green & Smart’s Nominated Adviser and Broker. Other advisors include DMH Stallard LLP (legal advisors to the Company as to English law), Crowe Clark Whitehill LLP (auditors to the Company and reporting accountants) and Luther Pendragon Ltd (financial PR advisor).