EEHB is an investment holding company with a subsidiary, Bio Eneco Sdn Bhd, which specialises in the manufacturing and trading of biomass fuel products, focusing on palm kernel shells and wood pellets.

Executive director and CEO Oliver Yeo said the listing exercise is crucial for the company to enhance capabilities, expand its regional footprint and create substantial value for the stakeholders.

“It will enable us to tap into a new customer base, further strengthening our position as a leader in the renewable energy sector, and allow us to build a hub for biomass fuel products,” he said in his opening speech at the launch of the company’s prospectus today.

The company said in a separate statement that based on an issue price of 0.29 sen per share and an enlarged share capital of two million shares, EEHB will have a market capitalisation of RM580 million upon listing.

An offer for the sale of 350 million existing ordinary shares will be made available to selected investors by way of private placement.

“As for the total proceeds, RM47 million will go towards land acquisition and construction of a new factory and warehouse in Kuantan, Pahang.

“Additionally, RM21.1 million will be used to buy machinery and equipment, RM27 million will be allocated for working capital, and RM6.3 million will finance listing expenses,” it said.

On its Kuantan expansion plans, executive director and finance director Salihudin Razali said this initiative will raise its annual capacity by about 240,000 tonnes.

“The company selected Kuantan because of its location as it is also near the port, which will make exporting its products easier,” Salihudin said.

Furthermore, EEHB said it plans to expand production at Pasir Gudang, Johor, and Lahad Datu, Sabah, bringing the investment cost for all three locations to RM23.49 million.