GPP to raise RM4.37 million enroute to LEAP listing

GPP to raise RM4.37 million enroute to LEAP listing
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KUALA LUMPUR (Aug 7): Biomass renewable energy producer GPP Resources Bhd is seeking a listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia at an issue price of 28 sen per share.

GPP will raise RM4.37 million via the excluded issuance of 15.6 million new shares, representing 10.06% of the enlarged share capital to selected sophisticated investors. Based on the enlarged share capital of 155.12 million shares, GPP’s market capitalisation would amount to RM43.43 million upon listing, said GPP in a statement today.

The company is principally involved in businesses that are related to the use of biomass to produce renewable energy and oil palm trunk (OPT) products.

Of the proceeds raised, RM1 million (22.89%) would be used for capital expenditure to purchase new machinery and equipment for the Group’s current and future operations of oil palm trunk (OPT) products business. The balance would be used for marketing and promotional activities as well as to finance the group’s day-to-day operations (RM1.32 million); research and development, and to defray listing expenses.

GPP executive chairman Tan Tiam Aik said the acquisition of various machinery and equipment will support the group’s effort to increase automation for its OPT products segment and the expansion of its range of products.

“These machinery and equipment are expected to increase automation, improve production efficiency and gradually increase our annual production capacity from 20,100 m3 to 30,000 m3.”

GPP’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.

“Such development enables us to offer a wider range of products to our customers (apart from the palm oil industry) as well as to tap into a wider market, thus allowing us to further grow our business and expand our revenue stream,” he added.

TA Securities Holdings Bhd is the approved adviser, continuing adviser and placement agent for GPP’s LEAP Listing which is slated for September, while Qwantum Capital Sdn Bhd (formerly known as Salihin Capital Sdn Bhd) is the Financial Adviser.