Kibo Energy PLC (LSE:KIBO, JSE:KBO) announced plans to spin off its renewable/clean energy generation projects into a new company via an IPO.
Kibo said it hopes the new company, to be called Ultimate Sustainable Energy Ltd (USE), will be listed on AIM with funds from the IPO being used to develop the renewable/clean energy generation projects.
It expects a fundraising of £7mln-£10mln will accompany the IPO and once listed it will own around 75% of USE,ensuring it will continue to benefit from future developments.
Projects currently earmarked for inclusion in the IPO portfolio are: current waste-to-energy projects in South Africa and the UK and all biofuel projects, inclusive of utility-scale projects in Tanzania, Botswana and Mozambique.
CEO of Kibo Energy, Louis Coetzee, said: "This is an exciting time for the growth of Kibo Energy, with this IPO unlocking the true value and potential of the company's sustainable, renewable energy assets.”