PETALING JAYA: GPP Resources Bhd has received approval from Bursa Malaysia for its listing on the LEAP Market.
GPP is involved in businesses that are related to the use of biomass to produce renewable energy and oil palm trunk (OPT) products.
According to its executive chairman Tan Tiam Aik, the proposed listing involves an excluded issuance of 15.60 million new shares to selected sophisticated investors, representing 10.06% of the enlarged share capital at an issue price of 28 sen per share.
“We expect to raise gross proceeds of approximately RM4.37 million via an excluded issue to selected sophisticated investors from the LEAP listing,” he said in a press release today.
Based on the enlarged share capital of 155.12 million shares, GPP is expected to have a market capitalisation of RM43.43 million upon listing.
GPP said it has allocated RM1 million (22.89%) from the gross proceeds raised on capital expenditure, to purchase new machineries and equipment to cater for the group’s current and future operations of oil palm trunk (OPT) products business.
Some RM1.32 million (30.17%) will be utilised as working capital for marketing and promotional activities as well as to finance the group’s day-to-day operations; RM500,000 (11.45%) for research and development, while the remaining RM1.55 million (35.49%) to defray listing expenses.
Tan elaborated that the group’s subsidiary Green Energy Resources (M) Sdn Bhd will develop biogas plants which use various types of biomass such as palm oil mill effluent, synthetic gas, food waste and animal manure as feedstock to produce renewable energy.
“The group will continue to leverage on the growth in the palm oil industry to continue to grow its renewable energy and OPT products segments, which uses organic waste produced from the palm oil industry to serve as feedstock and raw materials for its business,” he added.
TA Securities Holdings Bhd is the approved adviser, continuing adviser and placement agent for the listing, while Qwantum Capital Sdn Bhd is the financial adviser.
