Kinetiko Energy (ASX: KKO) has been admitted to the ASX following a successful IPO which offered 40 million shares at $0.20 to raise $8 million, with allowable oversubscriptions of $2 million.
When Kinetiko first hit the ASX boards at 12 noon EST today, the company had 55 million shares on issue.
Investors have already taken a shine to the company, pushing the stock 10% higher than the IPO price in the first half an hour of life as a public company, a major achievement considering most IPO's have recently been pulled due to poor market conditions.
Kinetiko will target Coal Bed Methane in the South Africa's Eastern Transvaal coalfield, which is one of the biggest and geologically well understood within the country.
The company will joint venture with a Black Economic Empowerment (BEE) partner Badimo Gas to participate in the commercialisation of the CBM Exploration Rights in the Amersfoort Area.
The project is strategically located close to the major population and manufacturing centre of Johannesburg, and is surrounded by a major portion of the country's energy generation infrastructure and the coal and gas to liquid fuels industry.
Boosting the prospectivity of the area, the historic underground colliery operations are 10 kilometres from the town of Amersfoort which has indicated gas contents and coal seam conditions.