News: Timah Resources share rise following ASX listing

Timah Resources (ASX:TML) shares have climbed after raising $2.1 million through its initial public offering of 10,605,000 shares at $0.20 each.

Shares in the renewable energy generation company are currently at $0.245 after trading started at 11am today.

This satisfies one of the conditions for the acquisition of Mistral Engineering Sdn. Bhd, a bio-gas renewable energy generation company with a plant in Sabah, Malaysia.

Consideration for the acquisition is the issue of 85.5 million shares priced at $0.10.

The plant uses palm oil mill effluent to produce methane, which is used in a conventional gas electricity generator to produce electricity.

Proceeds from the IPO will be used to upgrade the plant to achieve a net electricity export capacity of 3.5 megawatts from the current 3 megawatts.