Repower sets IPO price at P5/share
MANILA -The Tiu family’s hydropower company Repower Energy Development Corp. is selling shares at the maximum indicative price of P5 each as it pushes forward with the country’s third initial public offering in 2023.
The offer is expected to raise as much as P1.15 billion, which will be used mainly to bankroll the expansion of its energy portfolio.
Repower will sell the shares from June 28 through July 14 this year. It will make its PSE trading debut under the stock symbol “REDC” on July 24 this year.
The company will be the third listing in 2023 after renewable power firm Alternergy Holdings and computer gadgets retailer Upson International Corp.
It is a subsidiary of businessman Dexter Tiu’s Pure Energy Holdings Corp.
Repower is selling up to 200 million shares to raise P1 billion for its ongoing power projects, an earlier deal prospectus showed.
Pure Energy is selling another 30 million shares, valued at P150 million, for post-IPO price stabilization activities.
Repower is offering about 32 percent of its shares to outside investors. It would have a post-listing market value of P3.25 billion.
Proceeds will be used to partially fund the company’s 15-megawatt Pulanai (Pulangi) in Valencia City, Bukidnon and the 4.5-MW Piapi power plant in Mauban, Quezon.
Repower said in its IPO prospectus it will also invest in other forms of renewable power.
“REDC aims to be a niche player in the [renewable energy] industry and to expand its footprint all over the country,” the company said.
“In this regard, REDC plans to rapidly grow through strategic acquisition of existing hydropower plants or projects or entering into [joint ventures] with other [hydropower service contract] developers as the company continues to search for viable mini hydropower projects locally and internationally,” it added.
Repower 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.