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Research: Energy & Resources
Renergen has provided details of its planned listing on the Australian Stock Exchange (ASX). The replacement prospectus was published on 8 May with the company looking to raise A$5m gross at an offer price of $0.8 per CHESS depository interest (CDI). The closing date of the offer, which is only available to Australian and New Zealand residents, is 22 May 2019 with new CDIs expected to start trading on 31 May. Net proceeds are to be used to drill additional wells into proven gas reserves in the Virginia gas field project, operated by Renergen subsidiary Tetra4. In addition, the funds will be used to partially fund a feasibility study for the commercialisation of the high concentration helium reserves contained in the Virginia gas project’s prospective sandstone deposit. Renergen’s ASX listing will give it additional liquidity and access to capital to support expansion. We published an update note on Renergen in January 2019; our forecasts are now under review as we incorporate information within the ASX IPO prospectus.
Written by
Renergen |
ASX listing and open offer details |
ASX listing |
Oil & gas |
9 May 2019 |
Share price performance
Business description
Analysts
Renergen is a research client of Edison Investment Research Limited |
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Renergen has provided details of its planned listing on the Australian Stock Exchange (ASX). The replacement prospectus was published on 8 May with the company looking to raise A$5m gross at an offer price of $0.8 per CHESS depository interest (CDI). The closing date of the offer, which is only available to Australian and New Zealand residents, is 22 May 2019 with new CDIs expected to start trading on 31 May. Net proceeds are to be used to drill additional wells into proven gas reserves in the Virginia gas field project, operated by Renergen subsidiary Tetra4. In addition, the funds will be used to partially fund a feasibility study for the commercialisation of the high concentration helium reserves contained in the Virginia gas project’s prospective sandstone deposit. Renergen’s ASX listing will give it additional liquidity and access to capital to support expansion. We published an update note on Renergen in January 2019; our forecasts are now under review as we incorporate information within the ASX IPO prospectus.
Year |
Revenue (ZARm) |
Adjusted EBITDA (ZARm) |
Reported net income (ZARm) |
Net (debt)/ |
Cash from operations (ZARm) |
Capex |
02/17 |
2 |
(22) |
(19) |
12 |
(23) |
(21) |
02/18 |
3 |
(27) |
(41) |
3 |
(18) |
(14) |
02/19e* |
4 |
(35) |
(41) |
5 |
(31) |
(107) |
02/20e* |
27 |
(37) |
(26) |
(192) |
(20) |
(296) |
Note: EBITDA normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments. Note: *Last published forecasts.
Stage one expansion of the Virginia gas project involving connecting 12 existing gas wells to a new gas pipeline and constructing a new helium and LNG plant with maximum daily production capacity of 74.6mcf liquid helium and 2,700GJ of LNG is fully funded through existing cash resources and committed debt funding from OPIC, the United States’ government development finance institution.
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Disclaimer
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Disclaimer
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ADL Bionatur Solutions (ADL-BS) reported robust Q119 growth, with revenue of €9.97m (up 134% year-on-year), driven largely by increased capacity utilisation at its contract manufacturing (CMO) business. CMO revenues were €8.02m (up 180% vs Q118), whereas the active pharmaceutical ingredient (API) segment was down 14% yearly to €0.90m, due in part to seasonality for β-lactam antibiotics. Other revenue, which includes proprietary products and other contracted services and income, was up 205% to €1.05m. The strong CMO growth drove a swing to positive €0.11m EBITDA, marking the second consecutive quarter of positive EBITDA. ADL-BS continues to expect positive overall EBITDA for 2019.