Clear Capital Markets - Mast Energy Developments IPO

Investments in placings and IPO’s involve a high degree of risk and are not suitable for all investors. The value of your investment can go down as well as up and you may not get back the money you invested.

Mast Energy Developments (MAST.L), a subsidiary of Kibo Energy Plc, have raised £5.5M to acquire and develop a portfolio of flexible power plants in the UK and become a multi-asset operator in the rapidly growing Reserve Power market.

Reserve Power?

Reserve power is the process of timing energy supply so it can be used during periods of peak demand.

The UK’s shortage of gas supply and the unreliability of renewables will affect electricity generation, leading to shortages and an increase in prices.

The solution lies in the providers of reserve power, not only because of its clean credentials but the fact it is a reliable and stable source of energy.

Reserve Power offers:

Smaller grids can only manage smaller power plants, requiring peaking plants to be installed in areas of need.
A clean and stable supply
RP plants are distinct from other types due to specific characteristics:

Small gas-fired power plants less than 50MW in size (diesel also possible but produces high emissions)
Dispatchable (can be turned on and off quickly to generate power on demand)
Essential for when system needs additional power quickly due to loss of generation or due to increase in demand
Able to supply power rapidly (reaction time of under 10 minutes)
Able to run for long periods continuously
Operate for limited number of hours per year (approximately 1000)
Plants comprise multiple small reciprocating engine gensets (1.5-4MW) housed in containers that include noise abatement and control systems
Plants are unmanned with remote dispatch of gensets through data connection.

Why Clean Energy?

The environmental benefits of the world moving towards clean and sustainable energy sources are enormous. But also as the geo-political world undergoes such change, sovereign states need to ensure there are reliable sources of energy supply. This has been apparent in the markets which have clearly shown as growing awareness and interest in this marketplace.

According to the latest market study on “Clean Energy Market Forecast to 2027 COVID-19 Impact and Global Analysis by Type (Hydro and Ocean Power, Solar Energy, Bioenergy, Geothermal Energy, and Wind Energy) and End User (Residential, Commercial, and Industrial)” the market was valued at US$ 788.36 million in 2019 and is projected to reach US$ 1,229.74 billion by 2027; it is expected to grow at a CAGR of 13.0% from 2020 to 2027

If this looks like something that might fit nicely in your portfolio, more information can be obtained from sole lead broker Clear Capital Markets.

Risk Warning

Investments in pre-IPO’s and IPO’s involve a high degree of risk and are not suitable for all investors. A pre-IPO issue is the funding given to the company before listing, there is no guarantee that the company will list. However, even when a company is listed on, say, the AIM market, it is considered to be a high-risk investment, and will have wider spreads on price and be more illiquid and it may be difficult to sell the shares on a short-term basis and in some circumstances it may be difficult to sell at any price.

All investments made into an IPO or new issue or in a secondary issue (Placing or ABB) should always be made solely based on the information provided in the relevant prospectus and any other supplementary documentation. The specific risks will be detailed in the prospectus, but the value of your investment can go down as well as up and you may not get back the money you invested. You should be sure that you fully understand the purpose of, and the reason for, the fundraising.

Before you decide to invest you should obtain information regarding the business plan and note the risk factors. If you have any doubts about the suitability of an investment you should seek professional advice.

The Mast Energy Developments IPO, a unique opportunity to invest in the UK's clean energy sector

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“We are excited to provide our clients with this opportunity to invest in the Initial Public Offering of Mast Energy Development. The sector is extremely popular at present and we believe the enthusiasm towards the sector is going to remain for the foreseeable future”

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