As the autumn season has just kicked off, the AIM board welcomed a new member with quite a remarkable IPO. BioEnergy Africa raised £8.6 million as it joined the London AIM market.So, BioEnergy Africa, which develops the production of ethanol from sugar cane projects in southern Africa, placed 68,825,600 new ordinary shares at 12.5 pence per share, representing approximately 20.7% of the company’s share capital. That makes BioEnergy Africa to be worth of around £41.5 million.
Chairman of BioEnergy Africa Phil Edmonds had this to say: "The market is growing rapidly and the economics are highly attractive. With this is mind we are also investigating other commercial opportunities relating to sugarcane and ethanol production in other southern African countries, some of which have historically been significant producers of sugar cane."
The company said the money raised during its IPO will be used to develop its first project, a 30,000 hectares ethanol project in Mozambique.
It is expected that global ethanol fuel production will increase to 100 billion litres by 2010.
Reference
http://www.bioenergyafrica-ltd.com/News/RNS/Admission%20to%20AIM%2001.09.08.pdf
User comments
Despite this, Edmonds has gone ahead with BAL (another £41.5 million investment), which underlines his commitment and belief in the future of the country - despite the risk associated with the powerful presence of Mugabe.
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