Thursday , 28 March 2024

Home » BUSINESS » Gas startup Bluedrop plans listing in US, SA

Gas startup Bluedrop plans listing in US, SA

July 6, 2021 7:21 am by: Category: BUSINESS, Energy, Featured, Investing Leave a comment A+ / A-

by SAVIOUS KWINIKA
JOHANNESBURG – BLUEDROP Energy, the South African gas startup company, plans to list its shares at the New York (NYSE) and Johannesburg Stock Exchanges (JSE) in both the United States and South Africa respectively.

Bluedrop will first float its shares on the NYSE in 2022.

Its JSE listing will follow at a date still to be announced.

“The listing on the stock market will elevate our profile within the energy sector and investment community,” said Bluedrop’s Chief Executive Officer, Kenneth Maduna.

David Sassoon, Bluedrop Group Chairman, said, “We are pleased to continue to advise Bluedrop on its next step in its journey.”

“The South African market is in desperate need for foreign capital infusion and this potential floating of Bluedrop’s shares in New York is going to help Bluedrop grow exponentially through asset acquisitions making it one of the leading LPG wholesalers and composite LPG cylinder manufacturers in Africa.”

Sassoon lamented a drought of investments in South Africa’s capital market, forcing startups like Bluedrop to seek funding from foreign markets.

“These are opportunities that should be available for local entrepreneurs and investors, unfortunately these opportunities end up being transferred to markets like New York and London.”

The executive urged the government to reenergise local markets, it needs to offer incentives to local investors to unleash local capital, which would encourage foreign investors to invest in South Africa and reduce risk exposure to foreign investors.

“Otherwise, local capital will continue to flow to foreign markets, which makes firms such as ours to have incentives to co-invest with local partners,” Sassoon said.

In April this year, Bluedrop announced that it has secured a US$20 million (R300 million) funding from J. Sassoon Group, a US, Washington DC based private equity and investment firm for the construction of Bluedrop’s modern state of the art Smart Composite LPG Cylinder manufacturing plant.

Export-Import Bank (Ex-Im) of the US has also issued a letter of interest providing $36 million finance guarantee in support of J Sassoon Group for this project.

Last month, J. Sassoon Group signed a Technical Services Agreement with the South African office of a US based multinational engineering firm, Fluor Corporation, for the development of Bluedrop’s smart composite liquefied petroleum cylinder manufacturing plant.

Bluedrop is negotiating to secure bulk off-takes for Bluedrop from LPG Suppliers in the US to complement and fulfil critical aspects of value chain and strategy.

J. Sassoon expects to help raise up to $100 million in private placement funding for Bluedrop’s second round of funding for its pre-IPO campaign, before its shares float on the NYSE.

– CAJ News

Gas startup Bluedrop plans listing in US, SA Reviewed by on . by SAVIOUS KWINIKAJOHANNESBURG – BLUEDROP Energy, the South African gas startup company, plans to list its shares at the New York (NYSE) and Johannesburg Stock by SAVIOUS KWINIKAJOHANNESBURG – BLUEDROP Energy, the South African gas startup company, plans to list its shares at the New York (NYSE) and Johannesburg Stock Rating: 0
scroll to top