Renergen, owner and operator of South Africa’s first liquid natural gas and helium onshore production project, saw its share price fall over 5% yesterday following the announcement on Friday that its CEO is moving temporarily to the US to oversee the Nasdaq IPO.
The share price traded at R13.53 on Monday, down from R14.26 on Friday, from R18 three months ago and from R27.50 a year ago.
The company recently had to release additional information on its operations after it faced online criticism, most notably from shareholder activist Albie Cilliers, who questioned the sustainability of the project and the transparency of the company.
The company said that capital to unlock the funding for Phase 2 of the project, to significantly expand helium production, was front of mind and in a form as efficient as possible with the least possible dilution.
“To this end, we have already stated we are preparing for a US IPO to maximise the chances of success and obtain the best valuations in the process. As such, a board decision authorised me to travel to the US to see through the capital-raising process,” CEO Stefano Marani said in a statement.
He said the organisation structure allowed him to spend time in South Africa based on predetermined periods of travel, and have regular interaction with the local team, while he was focused on strategic IPO-related initiatives.
“Covid has taught everyone that remote working is feasible, which is no different for Stefano. Nick Mitchell, our COO, oversees the business’s operational aspects, which Stefano is not involved in. Stefano is now focused on laying the necessary foundations for a successful IPO by being present and engaging with industry leaders and investors in the world’s largest oil and gas community,” the company said in an update.
It said significant groundwork and relationship building were required for a successful IPO, thus in-person discussions in the US were necessary.