China Biodiesel applies for London listing

China Biodiesel applies for London listing

 

Jun. 15, 2006 (China Knowledge) – China Biodiesel International Holding Co. Ltd. has made an application to raise up to £8 million on London’s Alternative Investment Market (AIM), a market for growing companies that has fewer requirements than the main London exchange.

 

Chairman Ye Huodong hopes that the float will put a market value of £35 million to £40 million on the company.

 

China Biodiesel, a waste oil processor, is based in Longyan city in Fujian province and claims to be the only company in China engaged in the production of biodiesel.

 

The company is betting on Beijing’s resolution to achieve 16% of energy use from renewable sources by the year 2020. China, faced with growing energy demands and a deteriorating environment, is starting to look towards biodiesel to achieve this aim.

 

China Biodiesel sources its raw material from processors of used cooking oil, waste palm oil and other waste oils, which it converts into fuel, detergents, shampoo, chemicals, packaging and crockery.

 

Proceeds from the IPO will be used to expand the company’s biodiesel operations thus enabling an increase in production.

 

Last year, the company reported a net profit of £1.9 million on a turnover of £4.5 million.

 

Evolution Securities China Ltd. is the nominated advisor and broker for the share sale.