Sterling Biofuels lists at 6.5 pct discount to offer price

Sterling Biofuels lists at 6.5 pct discount to offer price
WA Business News - Northbridge,Western Australia,Australia
... company offered 35 million shares under its initial public offer to raise $35 million to fund the construction of a 100,000 tonne a year biodiesel plant in ...

Alternative fuels company Sterling Biofuels International Ltd finished its first day of trading on the Australian Stock Exchange at a discount to its share sale price.

The company closed at 86 cents, down 14 cents on the initial public offer price of $1 per share, after opening at 93.5 cents.

The company had raise $35 million from the sale of 35 million shares to fund the construction of a 100,000 tonne a year biodiesel plant in Malaysia, due to start up in July next year.

The company plans to use refined, bleached and deodorised palm olein as feedstock for the plant and a three-year offtake agreement is already in place with an international energy trader.

The company has forecast a net profit of $24.6 million for 2007-08, when the plant will be at full production.

Sterling Biofuels expects there will be an increase in demand for biodiesel and it is prepared to expand its operations.

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