IPO Watch: Bioenergy company Delorean gains over 80pc on its ASX debut
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The ASX welcomed another new listed entity today in bioenergy company Delorean (ASX:DEL).
Bioenergy generally refers to renewable energy derived from living organic matter. Delorean’s speciality is in a process called anaerobic digestion which breaks down various wastes to output green power.
It eventually plans to be a “gentailer” – which means to offer retail energy services as well as generation.
Delorean raised $14 million at 20 cents per share. Shares began trading at 12pm and in the first few minutes traded between 36 and 38 cents which represented a gain of between 80 and 90 per cent.
Delorean is already generating revenue, making $31.2 million in FY20 and earnings of $3.6 million. But it hopes the IPO will help it kick off its shovel ready projects.
The company reports the listing was several times oversubscribed with both new shareholders and existing investors chipping in.
“We look forward to deploying the IPO capital into our infrastructure project pipeline to realise the vision of direct bioenergy asset ownership and operation as a national renewable ‘gentailer’, creating shareholder value through our vertical integrated platform,” said managing director Joe Oliver.
Speaking with Stockhead last week, Oliver said Australia is gradually catching up to the rest of the world in adoption bioenergy – particularly biogas.
He noted this has been another catalyst of COVID-19 and was good news for Delorean.
“I think COVID has certainly helped with the line that we can’t keep using fossil fuels we need to start recycling, reusing, recapturing those nutrients but using that byproduct of energy,” Oliver said.
“It’s an exciting time, we’re starting the journey here in Australia where we’re recognising there’s value to waste streams other than putting it into landfill.”