Hydropower company Repower Energy Development Corp. completed the country’s third initial public offering (IPO) for the year as it raised P1.15 billion through the sale of shares.
The company, which is listed under the stock symbol REDC, closed 0.8 percent higher at P5.04 per share during its trading debut on Monday. The IPO shares were earlier sold at P5 each.
Repower, led by businessman Dexter Tiu, is the latest public listing in 2023 after renewable power firm Alternergy Holdings and computer gadgets retailer Upson International Corp.
It comes as larger companies, including billionaire Enrique Razon Jr.’s Prime Infrastructure Capital Inc. and the planned real estate investment trust IPO of the Sy family’s SM Prime Holdings Inc., delayed their listing plans due to volatile market conditions.
PSE president Ramon Monzon earlier expected as many as 14 IPOs in 2023. He said, however, they were still targeting to grow capital market fundraising by 44 percent to P160 billion this year.
Repower’s successful public debut came as it secured Japan-listed TOKAI Holdings Corp. as an anchor investor when the latter acquired a third of the IPO shares.
IPO proceeds will be used to partially fund the company’s 15 Megawatt Pulanai (Pulangi) in Valencia City, Bukidnon and the 4.5 megawatts (MW) Piapi power plant located in Mauban, Quezon.
READ: Repower adds new mini-hydro plant to expanding portfolio
Repower said in its IPO prospectus it would also invest in other forms of renewable power. Repower operates six hydropower plants with a combined capacity of 10.146 MW.
READ: Repower to build wind farm in Quezon
China Bank Capital is the 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. INQ