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Bioenergy producer Delorean (ASX:DEL) makes ASX debut

Renewable Energy
ASX:DEL      MCAP $10.78M
12 April 2021 17:00 (AEST)

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Delorean Corporation (DEL) has made its debut on the Australian Securities Exchange after raising $14 million through its oversubscribed IPO.

The bioenergy company diverts organic waste from landfill and turns it into renewable electricity and gas at a processing plant in Jandakot, Western Australia. The facility is owned by gardening supplies manufacturer Richgro and uses a process called anaerobic digestion to convert the waste to energy.

Under the IPO, 70 million shares were issued at 20 cents per share to institutional investors and more than 800 retail shareholders, giving Delorean a market cap of $35.9 million upon listing. 

Funds raised through the IPO will allow Delorean to build its own waste-to-energy facility in Victoria, which is estimated to cost $13.5 million.

Delorean’s Managing Director, Joe Oliver, said he’s confident listing will help the company grow and capture a larger share of the growing bioenergy market.

“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,” Oliver said.

The vertically integrated, eight-year-old company achieved revenue of $31.2 million last financial year and EBITDA of $3.6 million.

Shares in Delorean more than doubled during trade today, finishing up at 42 cents per share by market close.

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