The Commonwealth Bank yesterday announced it had increased its holdings in Australian Biodiesel Group from 5.08% to 6.52% with the additional purchase of more than 1.5 million shares in the company, currently trading at $A1.10 after closing at $A1.08 yesterday.
CBA first became a significant shareholder in the company in early January, less than a month after the biodiesel producer completed its oversubscribed initial public offering.
Equity Trustees also made an ASX announcement yesterday, indicating it had become a significant shareholder with a 6.97% stake in Australian Renewable Fuels with the purchase of more than 3.5 million shares in the company on behalf of SGH Professional Investor Smaller Companies Trust.
ARF completed its IPO in May 2005, listing with a share price of $A1.00. The Perth-based biodiesel company saw its stock (ASX code ARW) close at $A1.55 yesterday, up 12.3% for the week and 9.9% for the month.
It is building two biodiesel plants, one in Western Austalia and one in Adelaide. ARF said the South Australian plant would be the country’s biggest biodiesel facility, producing 45 million litres of the fuel a year. South Australia currently has no operating petroleum refinery.