PETALING JAYA: GPP Resources Bhd is looking to raise RM4.37 million from its listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia Securities Bhd next month.
GPP is involved in businesses that are related to the use of biomass to produce renewable energy and oil palm trunk (OPT) products.
The listing involves an excluded issuance of 15.6 million new shares to selected sophisticated investors, which represents 10.06% of the enlarged share capital, at an issue price of 28 sen per share.
Based on the enlarged share capital of 155.12 million shares, it is expected to have a market capitalisation of RM43.43 million upon listing.
Of the proceeds raised, RM1 million (22.89%) will be used as capital expenditure to purchase new machineries and equipment to cater for the group’s current and future operations of OPT products business; RM1.32 million (30.17%) as working capital for marketing and promotional activities as well as to finance the day-to-day operations; and RM500,000 (11.45%) for research and development.
GPP executive chairman Tan Tiam Aik said in a statement that the acquisition of various machineries and equipment will support the group’s effort to increase automation for its OPT products segment and its business expansion.
“These machineries and equipment are expected to increase automation, improve production efficiency and gradually increase our annual production capacity (for OPT products segment) from 20,100 m3 to 30,000m3,” he added.
Meanwhile, GPP, via its 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.
“Such development enables us to offer a wider range of products to our customers as well as to tap into a wider market, thus allowing us to further grow our business and expand our revenue stream,” said Tan.
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.
