A West Perth-based company specialising in water treatment technology will open its $35 million initial public offer tomorrow, with part of the funds raised going towards the establishment of treatment plants in Saudi Arabia, Morocco and Mexico.
Water Resources Group Ltd is planning to raise a maximum of $35.16 million through the issue of 58.33 million shares priced at 60 cents apiece. A minimum target of $15 million has been set.
In its prospectus, the company said it has secured global rights to use patented technology which produces potable water taken from either seawater desalination, coal seam gas waste water or polluted ground water through a chemical free pre-treatment system.
WRG said it acquired the technology from US-based Campbell Applied Physics Inc where most of its business operations are being consolidated into subsidiary Water Resources International.
"WRG is able to provide high quality long term water supply to customers and virtually eliminate direct capital equipment investment, operating costs and plant management and maintenance for customers, these costs being included in one water bill from WRG," chairman Peter Carre said.
The company has also established joint venture agreements to sell into the Saudi Arabia, North Africa and Mexico, and is currently targeting arrangement in United Arab Emirates and Australia.
Funds raised from the offer will be used to fund business operations, expansion opportunities and provide initial project finance for water treatment plants in Saudi Arabia, Morocco and Mexico.
Joining Mr Carre on the board are deputy chairman Brian Harcourt, managing director Ross Lyndon-James, non-executive directors Andrew Kent and Dominic Redfern.
The offer is due to close on October 10 with listing expected on October 22.
On completion of the offer, the company will have 169.12 million shares in issue, if full subscription is reached, and a market capitalisation of $101.5 million.
