Delorean doubles on ASX debut
Bioenergy company Delorean (ASX:DEL) had a stellar opening day on the ASX, more than doubling its IPO price on its first day of trading. Delorean is a builder and operator of bioenergy projects. The Perth-based business comprises a group of four companies involved in the infrastructure, generation and retail of renewable energy.
Bioenergy, which refers to renewable energy derived from living organic matter is Delorean’s specialty. The company uses a process called anaerobic digestion which breaks down various wastes to output green power.
Delorean Corporation is the result of a 2019 merger of Delorean Energy, Biogass Renewables, CleanTech Energy and Tekpro. The four businesses now all work together to deliver bioenergy projects across the full life cycle – from project conception to completion, processing organic waste, generating renewable energy and the monetisation of electricity, heat and gas.
Delorean is already generating revenue, reporting $31.2 million in FY20 and earnings of $3.6 million. The company has adopted a business model which generates revenue from both suppliers and customers. It charges gate fees for the acceptance of organic products and waste, then sells the converted electricity, heat and gas to wholesale and retail clients.
The company intends to use funds from its IPO to help it kick off new projects that are ready to go. Following the heavily oversubscribed offering, Delorean raised $14 million at 20 cents per share. On their first day they managed to hit a high of 43 cents before ending the day just lower at 42 cents.
Delorean also has plans to offer retail energy services as well as generation.
“We look forward to deploying the IPO capital into our infrastructure project pipeline to realise the vision of direct bioenergy asset ownership and operation as a national renewable ‘gentailer’, creating shareholder value through our vertical integrated platform.” said managing director Joe Oliver.