Independent power producer (IPP) Africa Clean Energy Solutions (Aces) will list on the Mauritian Stock Exchange on December 14.
The company will issue up to 600 000 new shares prior to the initial listing date.
The listing sets up a transparent capital raising platform that will allow the company to engage a new international investor base and bring financial close to its key projects, the company explained in a release issued on Monday.
Within the first year following the listing, Aces is expected to acquire the business of South Africa Clean Energy (Sace) Solutions, which has received the approval of the Exchange Authority of the South African Reserve Bank to implement the acquisition.
This consolidation will bring together the work and experience of the broader management team in combining Sace-developed South African and Namibian assets into one Pan-African renewable energy producer.
Sace has developed and has partial ownership in a Namibian solar project and two projects in South Africa.
Through its subsidiary companies, Aces focusses on the proven technologies of solar and biomass in select African countries where, working with local partners, the company takes a project from inception through to grid connection.
Specialising in projects that will generate between 3 MW and 50 MW of power, with stable long-term offtake agreements and in politically stable jurisdictions across the continent, Aces, over the long-term, aims to own and operate a combined generating capacity of 500 MW by 2023.
Currently, Aces has five greenfield projects, of which three will progress to construction over the next 12 months. The first will be commercially generating in 2019, and the remainder by 2021.
Aces CEO Dave Kruger cited the listing as “an exciting milestone” and noted that it was the culmination of all the commitments made at the beginning of the journey.
“The projects are required to meet the group’s post-tax dollar internal rate of return of 14% and, over time, will generate material dividends to Aces. The fragmented energy market across Africa will continue to allow Aces to build a diversified portfolio of power generating investments,” he explained.
Commenting on the group’s wider impacts, group chairperson Gaetan Siew said the broader impact that is being felt is the empowering and social upliftment of the local communities that Aces works with.