Sindicatum Planning $100 Million Pre-IPO Funding Round

SINGAPORE (Reuters) – Clean-energy project developer Sindicatum Carbon Capital hopes to launch a private equity placement worth $100 million by next month ahead of listing shares in the company, the group CEO said on Thursday.

Singapore-based Sindicatum has 28 projects in China, India, Southeast Asia and the United States that aim to cut greenhouse gas emissions. The group has a total of $310 million to invest, including a fund of more than $200 million.

To date, all of the $310 million is fully committed to the current project pipeline. “We are not raising a second fund at this time,” Assaad Razzouk told Reuters in an interview in Singapore.

Instead, the company has turned to a private placement of common stock on a pre-IPO basis to several institutional investors.

“At the moment, we are finishing our preparatory work. My best guess today is that we will launch towards the end of June and we are expecting to get a result by the end of the year,” he said.

“Our target amount is $100 million and we will see what the market conditions are,” he said, but couldn’t comment on the level of market interest.

Formal listing of the company would follow some time afterwards, he said.

“We will be looking to list within 12-18 months of the completion of the pre-IPO private placement, and the listing venue will be determined based on market conditions and the advice we receive closer to the time.”

Most of Sindicatum’s projects focus on three areas: capturing coal mine methane, municipal waste to energy such as capturing methane from landfills, and agricultural waste.

Methane is a powerful greenhouse gas that can be collected and burned to create electricity as well as a steady source of income for project developers.

About three quarters of Sindicatum’s projects are in Asia and Razzouk said he wanted to increase funding to U.S. investments.

“I expect that although the United States will stay smaller than Asia, it will experience more rapid growth in terms of our portfolio.

“Because at the moment, the U.S. is 12-15 percent of the portfolio. I’d like to see it 20-25 percent, money allocated, over the next two years.”

By David Fogarty
(Editing by Lincoln Feast)