Repower firms up P1.2-B IPO
MANILA -The Tiu family’s hydropower company Repower Energy Development Corp. will begin selling shares in its P1.2-billion initial public offering (IPO) in the latter part of June.
According to the Philippine Stock Exchange (PSE), Repower will price the IPO shares on June 23 while the offer period will run from June 28 through July 14 this year.
The company will make its PSE trading debut under the stock symbol REDC on July 24 this year.
Repower earlier delayed the IPO after seeking more time to firm up talks with investors through the so-called book-building period.
Repower is a subsidiary of businessman Dexter Tiu’s Pure Energy Holdings Corp. It is selling up to 200 million shares at a maximum officer price of P5 each to raise P1 billion for its ongoing power projects.
Pure Energy is selling another 30 million shares under an overallotment option to raise P150 million.
Profitable RE play
Repower is offering about 32 percent of its shares to outside investors. It would have a post-listing market value of P3.25 billion at the prospective offer price. Proceeds will be used to partially fund the company’s 15-megawatt (MW) Pulanai (Pulangi) in Valencia City, Bukidnon, and the 4.5 MW Piapi power plant located in Mauban, Quezon.
The company operates six hydropower plants with a combined capacity of 10.146 MW. It earlier tapped China Bank Capital as sole issue manager, underwriter and bookrunner for the IPO.
In an earlier statement, Repower said it had a net income of P168 million last year and this was projected to grow to P300 million by the end of this year.
“Unlike other renewable energy (RE) companies that did an IPO with net losses and selling a pipe dream, [Repower] is a solid company with recurring net income that grows exponentially,” company president Eric Peter Roxas said in the statement. INQ
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