Genex Power is seeking $8 million through an initial public offer of 40 million shares priced at $0.20 that is underwritten by Morgans.
Proceeds will be used to carry out a Project Feasibility Study for its flagship Kidston pumped storage hydroelectric scheme in northern Queensland.
Adding interest, Genex recently formed a strategic alliance with Zhefu Hydropower International Engineering Corporation Limited, one of the largest hydroelectric electrical and mechanical equipment manufacturers in China.
Zhefu is investing $1.6 million into the IPO and will hold a 20% equity interest in Genex.
The Kidston Project has the potential to generate up to 330 megawatts of rapid response, flexible peaking power for delivery into Australia’s National Electricity Market.
Kidston offers a potentially large scale, low cost, flexible solution to Queensland’s growing peaking power requirements and is expected to be well positioned to take advantage of the combined effects of an oversupply of baseload generation capacity and escalating peak power prices being driven by increasing gas turbine fuel costs.
It benefits from the presence of significant existing in-situ infrastructure, licences, permits and building materials.
These assets are expected to mitigate a portion of the Kidston Project capital costs that would normally be associated with the building of a large scale pumped storage hydroelectric scheme.
Genex recently completed a Pre-Feasibility Analysis which showed the Kidston Project to be economically and technically viable at a pre-feasibility level.
The company has a proposed code of GNX.
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