Montauk to switch primary listing to the Nasdaq
The JSE-listed company aims to target potential investors after getting approval from the Reserve Bank to move its listing to the US
JSE-listed Montauk Holdings will move its primary listing to the Nasdaq stock exchange in the US, it said on Wednesday.
This will, among other things, provide the company with more access to potential investors. In 2014 Montauk was unbundled from black empowerment investment company Hosken Consolidated Investments and listed on the JSE.
Montauk, which is based in Pittsburgh, extracts and converts methane gas from waste landfills across the US, where it has been engaged in commercial-scale development of renewable energy facilities for more than 30 years.
“Although the company is incorporated in South Africa and its shares trade on the JSE, the company’s operations, assets, employees and customer relationships reside exclusively in the United States of America and are held by its US subsidiaries,” Montauk said in a statement.
“The company believes the proposed listing will better strategically align the company with the jurisdiction in which it operates, the US programmes and policies in which the company participates that incentivise the use of renewable fuels, and to provide greater access to potential investors.”
Montauk has benefited from subsidies through the Renewable Fuel Standard (RFS), a US federal programme.
Montauk has already received approval from the SA Reserve Bank to pursue the Nasdaq listing. Its secondary listing will be on the JSE. The target date for listing is April 2019, subject to shareholder and regulatory approvals.
The proposed listing will be achieved through a corporate restructuring to form a new company, Montauk Energy, which will ultimately hold the business and assets of Montauk. It is also envisaged that shareholders of Montauk Holdings, on a date to be determined, will receive shares in Montauk Energy.
The statement said the company’s current executive management team is expected to continue to serve in the same capacities with Montauk Energy.
Montauk’s share price traded at R77 on Wednesday and is 130% higher over the past year.
In its interim results for the six months ended September, Montauk’s profits increased to $11.15m from $9.57m in 2017. Headline earnings per share were 20.7% higher to 8.28c per share.