IPO Series - Elridge Energy Holdings Berhad - Biomass Manufacturer & Trader

Source: $ELRIDGE (0318.MY)$ IPO prospectus
-Will be listed on the ACE Board

Full IPO Video on YouTube  (Chinese version): - YouTube

Info of IPO
Enlarged no. of shares upon listing: 2000M
IPO price: RM0.29
Market capitalization: RM580M
Estimated funds to raise from Public Issue:  RM101.5M
PE ratio = 24.6x (based on FY2023)

Business Model

Figure 7: Financial position of EEHB

Financial overview, industry market, and personal opinion
-From the profit & loss statement, the PAT margin sharply increased from 1.51% to 7.03% from FYE2021 to FYE2023, which translated into a CAGR of 66.97% and further enhanced the value to 12.72% in FPE2024.
-According to the market research report, biomass fuel products were mostly utilized for power generation and manufacturing, which occupied 41.0% and 38.9% respectively in 2023.
-Based on the FYE2023, the PE ratio was 24.6x and further dropped to approximately 20x after considering the FPE2024 result.

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The details of the IPO prospectus can be accessed through
ELRIDGE - INITIAL PUBLIC OFFERING IN CONJUNCTION WITH THE LISTING OF ELRIDGE ENERGY HOLDINGS BERHAD ("EEHB" OR THE "COMPANY") ON THE ACE MARKET OF BURSA MALAYSIA SECURITIES BERHAD ("BURSA SECURITIES") COMPRISING: (I) PUBLIC ISSUE OF 350,000,000 NEW ORDINARY SHARES IN OUR COMPANY ("ISSUE SHARES") IN ...