Renergen makes its debut listing on the JSE’s ALTX.
This listing will be the first Special Purposes Acquisitions Company (SPAC) in South Africa. The aim of such a company is to bring in capital from investors and as a listed shell, the intention is to go out and make investments in the alternative energy space.
Stefano Marani, CEO of Renergen, said the decision to list was motivated by the timing of the energy crisis in the continent. “There are some fantastic opportunities in the continent and I believe we now have first mover advantage.”
Renergen was able to raise 74 million rand ahead of their listing; Marani told CNBC Africa that the funds came from major blue chip investors like Miza Capital, Sanlam and BCI.
“They are of a similar mind set, they believe that alternative energy is the space to be in right now,” said Marani.
Asked whether 74 million rand will be enough, Marani said, “The intention is to get a little capital on the board and bring awareness to the asset class… with a SPAC one of the rules is that the first acquisition gets voted on by the shareholders not the board.
"So the shareholders get to see the due diligence that we’ve done and they see the offer that is on the table and they get to approve the transaction and given that they were the first investors, they have right of first refusal to then add on more capital.”
According to Marani, the focus will be on South Africa and Sub-Saharan African. The company has identified a shortlist of a pipeline that is being currently observed. One, is a natural gas play that is in South Africa and in addition to that they are looking at the hydroelectric opportunity in the north of Limpopo.
“Energy is by and large a very regulated industry so first and foremost, you have to make sure that what you are buying ticks all the boxes from a regulatory perspective.”
Marani added that an important factor is the nature and source of the energy, because they are not only talking about power in terms of electricity but any form of electricity that will deliver kinetic energy like “movement, motion, thermal heating”.
“There are a number of opportunities that fit that bill,” he said.