Renergen’s Free State field gets IDC boost
Renergen’s developing Tetra4 gas project puts it a step ahead of other new renewable energy listings
The Industrial Development Corp (IDC) has shown its confidence in AltX-listed Renergen’s Tetra4 project, near Virginia in the Free State, by extending a R218m loan to take it forward. Since the IDC ought to know a thing or two about due diligence, its backing could encourage Renergen shareholders to follow their rights if the company approaches the market to raise the R145m in equity that it needs as a condition to drawing on the loan. Renergen CEO Stefano Marani says the company will do what is best for shareholders and has not yet decided what form the equity will take, whether mezzanine capital or shares. A wider share offering would help address the lack of tradeability in the shares, which may be deterring some investors. Renergen’s two biggest shareholders are Tamryn Investment Holdings with 56.12% and Trillian Asset Management with 24.7%. On average, about 200,000-300,000 shares trade each month out of 79.4m in issue. The independent valuation of the Tetra4 proven and probabl...
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