MEDIA RELEASE
May 2006
Media Release
LINC ENERGY IPO CLOSES OVER SUBSCRIBED
Linc Energy Limited (Linc) announced that its Initial Public Offer has closed over subscribed. Linc raised A$22 million through the issue of 88 million shares at A$0.25 and is expected to list on the Australian Stock Exchange this week. (Expected to be Wednesday, 10th May)
BBY Limited, strategic partner of US investment bank Jefferies & Co, was the lead broker to the Offer, which gives Linc a post-listing market capitalisation of A$80.25 million.
Linc is an emerging Australian alternative energy company capable of producing very large volumes of low cost, environmentally friendly, ultra-clean diesel and jet fuels. Linc achieves this by combining the two proven technologies of Underground Coal Gasification (UCG) and Coal To Liquids (CTL).
Linc Energy's CEO, Mr Peter Bond said that he was delighted with the strong support from retail and wholesale investors and particularly from offshore investors in the United States and Europe.
"We believe that demand has been driven by the growing investor interest in cleaner, alternative petroleum products. Our technology initiatives have the potential to deliver significant commercial quantities of gas for the production of ultra-clean, sulphur free diesel and jet fuels. This has been a compelling business case for investors," said Mr Bond.
"The funds raised will be used to capitalise on the company's significant coal deposits and unique production expertise as outlined in our prospectus. Linc plans to accelerate the expansion of the existing UCG facility at Chinchilla, Queensland and to purchase, install and commission a Gas to Liquid demonstration plant with the capacity to produce up to five barrels per day of ultra-clean fuel products.
"The support Linc has experienced has been nothing short of superb, not only was the A$22 million IPO comfortably raised with very strong support from sophisticated overseas investors, Linc also attracted strong retail interest from the general investor community attracting approximately 600 shareholders."
Mr Bond said Linc's IPO is the first step towards Linc building a 20,000 barrel/day CTL synthetic fuel facility at its site in Chinchilla (Qld) providing some of the most environmentally friendly ultra-clean diesel and jet fuels available today. This is not just a significant stage reached for "Linc the company", but for Australia's ability to fill the 'oil gap' which is currently filled by foreign oil.
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