Kibo Energy to spin out Ultimate Sustainable Energy in an IPO at London Stock Exchange

Ultimate Sustainable Energy

LONDON, UK: Kibo Energy (AIM: KIBO), the renewable-energy-focused development company, is proceeding with a proposal for an Initial Public Offering (IPO) to be named Ultimate Sustainable Energy Ltd (USE) in advancing its Corporate Strategy towards significant renewable/clean energy developer status.

Kibo energy will furthermore seek admission to the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) for the IPO.

The IPO will seek to raise sufficient funds to develop the company’s portfolio of renewable/clean energy generation projects, thereby supporting the company’s strategic intent to significantly advance and accelerate the development and execution of its sustainable, renewable energy strategy.

Highlights:

  • Kibo’s renewable/clean energy generation projects to be listed on AIM as a new company named USE by Q4 2022/Q1 2023
  • Post-admission, Kibo expects to hold a significant majority interest of ~75% in Ultimate Sustainable Energy Ltd (USE), maintaining a strategic interest post the initial fundraise and admission, to ensure continued upside from future developments
  • Admission seeks to capitalise on strategic growth and funding opportunities identified in the renewable/clean energy generation market
  • Anticipated fundraise of c. £7-10 million for USE to take place alongside admission – funds raised will be used to advance the short- to medium-term project development of a portfolio of renewable/clean energy generation projects to achieve financial close

CEO of Kibo Energy, Louis Coetzee, says: “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. This includes two waste-to-energy projects in South Africa, the first of which is a 2.7 MW facility in Gauteng and the second which comprises a target of 20 MW, and the Southport project in the United Kingdom of 10 MW electric power with 5.5m m3 biogas (i.e., green gas) plus a planned 2 MW battery storage.

Further to this, the Company is in the advanced stages of disposing of its coal assets while retaining the associated energy projects that target the innovative biofuel technology on which the Company has carried out extensive work over the past few months.

“The market opportunities, government support and technical innovation in both South Africa and the UK are evolving and are at the ideal stage to position USE, and thus Kibo, as influential innovators in the renewable/clean baseload energy generation sector.

Most notably, Kibo will retain a controlling interest (c. 75%) in USE that will allow shareholders to benefit from future USE developments while attracting new investor bases, including impact investors seeking companies that prioritise ESG outcomes.

Progress on the development of USE’s project portfolio is further expected to have a positive social, environmental and economic impact on the communities where it operates, and we look forward to updating the market in this regard and on what we believe are very robust financials underpinning the USE IPO-portfolio as well as potential value distribution opportunities to Kibo’s shareholders.”

Background and Commercial Rationale

The USE business strategy is to acquire, develop and operate a comprehensive portfolio of renewable/clean baseload energy generation projects, exploiting the global step-change towards renewable/clean energy. Kibo’s current projects to be included in USE’s IPO portfolio are:

  • waste-to-energy (‘WTE’) and alternative and renewable/clean energy generation projects in South Africa and the UK (c. 25 MW);
  • the Company’s existing three utility-scale baseload generation projects in Botswana, Mozambique and Tanzania (c. 900 MW in aggregate) on the basis of the planned transformation of these into renewable/clean energy projects as discussed above.

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