Renergen chief executive Stefano Marani said on Friday that the listing was expected to take place in the first half of next year.
“We are busy with the paperwork and we have to get the necessary regulatory approvals before the listing can take place. We are excited about what lies ahead for the group as we believe the ASX listing will be good for the company,” Marani said.
As a company that operated in the oil and gas sector on the JSE, there were very few companies that local investors could make comparables with, he said.
“The oil and gas sector is a very lonely place for us at the moment. There are very few companies that we can be compared to on the JSE and listing on the ASX will make it easier for fund managers to compare us with other companies listed in Australia that run to several hundreds. It will be easier for us to blend in there.”
He said should the listing on the ASX be successful, it would give Renergen the international exposure it required and act as a global showcase for foreign investors on the good prospects for natural gas in South Africa.
“The ASX is vibrant with small caps companies. On the JSE, 90percent of its market capitalisation comprises companies valued at more than R5billion and on the ASX 84percent of the ASX’s market cap comprises companies under R5bn.”
Renergen boasts a market capitalisation of R734.53million.
The company is confident that the planned listing on the ASX will improve liquidity in the shares owing to the deep investor pool in Australia that has an understanding of the oil and gas sector.
However, the group said the dual listing would happen after the completion of an underwritten R125m rights issue to shareholders, which was fully underwritten.
The group said this funding, once available, would allow the company to draw down on the debt facility of R218m being provided by the Industrial Development Corporation, which would be applied to the expansion of its Virginia Gas Project to produce helium and Liquefied Natural Gas.