i(x) Net Zero PLC shares are trading at a material discount to the net value of its assets, which together offer investors a unique opportunity to gain exposure to unquoted US companies supporting the transition to net zero, said Shore Capital.
Shore Cap, which is house broker to the company, said the fall in the share price in recent weeks provides a “window of opportunity for investors, given the likely developments across the portfolio over the course of the year”.
Based on the broker’s estimate of net asset value (NAV), the current share price implies a 51% discount to NAV, the analysts said.
Looking ahead, Shore Cap expects further news from California-based WasteFuel, calculated as 77% of NAV, as it develops its strategic relationship with Maersk and strategic initiatives progress as planned.
IX management expects to be supplying Maersk with renewable methanol from 2024 onwards and, the analysts said, “any new developments on a strategic or capital level would likely be accretive to NAV”.
For the SPAC co-sponsored by Enphys Management Company (EMC), which saw a valuation uplift to US$10.4mln in late March and is attributed 9% of NAV, the broker awaits further news on the de-SPAC/merger process, “which is likely to raise the profile of the holding considerably, given the growing interest in renewables in [Latin America]”.
Shore Cap said IX management “is pleased with how the other strategic minority holdings are progressing, and we anticipate further news flow over the coming months”, adding to the appointment of a new financial director announced today.