WA electricity consumers are poised to gain a fresh window on the internal workings of the local electricity market following the successful close of Queensland-based power generator ERM Power's $100 million initial public offer.
ERM, which operates and part owns both the Kwinana and Neerabup gas-fired power stations, today wrapped up its offer of 57.1 million shares at $1.75 apiece, giving it a notional market capitalisation of $280 million ahead of its trading debut tomorrow.
As a public company required to regularly report to the market, the Brisbane-based generator will provide local energy consumers a rare public window on conditions in the WA electricity and gas supply markets.
ERM chairman Trevor St Baker said the strong investor response to ERM's float was a vote of confidence in its "integrated business model and direct exposure to the expected growth in the Australian electricity industry and low emission gas-fired generation.
One of the nation's biggest power companies, ERM has developed six major gas-fired power stations in Australia since 1995, representing almost 30 per cent of all new generation capacity installed in that period.
In addition, it aims to install an extra 4,500 megawatts of capacity over the next decade, potentially including additional capacity in WA.
ERM also holds a 21.25 per cent stake in the Red Gully gas prospect, adjacent to the promising Gingin West gas discovery north of Perth, which is due to be drilled at the end of the month.
The company said it was well on track to meet its prospectus forecasts with better than expected results over the last two months.