Montauk targets 2021 Nasdaq listing


Montauk targets 2021 Nasdaq listing

Published Date: 2020-10-15 | Source: Stephen Gunnion | Author: Stephen Gunnion

Montauk targets 2021 Nasdaq listing

The renewable energy company says conditions are now favourable to implement the proposed listing in the US.

Montauk Holdings' shares jumped by over a quarter yesterday after it said it plans to go ahead with a listing on the Nasdaq stock market in the US due to what it believes are favourable conditions.

Montauk Energy is based in Pittsburgh, Pennsylvania and is one of the most experienced developers and operators of renewable natural gas (RNG) and landfill gas to electricity facilities in the US, with 14 plants in 6 states. It captures methane, preventing it from being released into the atmosphere, converts it into either renewable electricity or RNG and sells the renewable electric and RNG, benefitting from environmental attribute premiums available under federal and state policies that incentivises their use.

It received Reserve Bank approval for the move almost two years ago but it delayed the move in February 2019. It's now targeting the listing for early next year, subject to shareholder and regulatory approval. It said it would first undergo a corporate restructure under a new holding company, Montauk Renewables, which would ultimately hold the business and assets of the company. Shareholders would receive shares in Montauk Renewables by way of a distribution in specie.

Montauk said it would provide shareholders with full details of the proposed listing in due course.

The company's shares closed 26% higher at R74.05 yesterday.

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