Demand for a stake in the new coal bed methane producer was at such a level that no shares will be issued to general applicants under the prospectus, which will leave the company with a market capitalisation of $100 million at the offer share price.
"Investors have responded positively to CH4's business opportunity which is underpinned by the strong industrial growth in regional Queensland," said CH4 chairman John Reynolds.
The company's first significant production project, the Moranbah Gas Project, is expected to be the only significant producer of natural gas for the Townsville market. CH4 also intends to pursue opportunities in the Gladstone and Rockhampton industrial region.
"We are focussed on delivering on our commitments to supply gas for the Townsville Power station and harnessing the company's significant reserve for the benefit of all stakeholders," said managing director and CEO of CH4, Louis Rozman.