Repower gets Japanese group as IPO anchor investor
MANILA -Japan-listed Tokai Holdings Corp. is snapping up a third of hydropower company Repower Energy Development Corp.’s P1.15-billion initial public offering, making it one of company’s biggest stockholders.
Tokai, described as a conglomerate with investments across retail, commercial and industrial markets, joins the offer as anchor investor and will take 32.5 percent of Repower’s IPO, owned by businessman Dexter Tiu. This will give Tokai a seat on Repower’s board of directors “on an observer status”.
The announcement was made as Repower rolls out the offer period of its IPO today (June 30) which will run until July 14. The company will make its PSE trading debut under the stock symbol “REDC” on July 24 this year.
“We are pleased on Tokai’s commitment to participate in our IPO as this is a testament to the market’s growing interest in our company,” Eric Peter Y. Roxas, president and CEO of Repower, said in the statement on Thursday.
“We look forward to taking advantage of the synergies available to us as a result of our partnership with Tokai, such as our expansion into the Japanese renewable energy market, specifically run-of-the-river hydropower projects where our expertise and Tokai’s reach in Japan will prove invaluable,” he added.
Repower is selling up to 230 million shares at a maximum officer price of P5 each. This is comprised of 200 million primary shares and an overallotment option for another 30 million secondary shares for post-IPO price stabilization.