REPOWER Energy Development Corp. (REDC) saw its shares gain four centavos during its initial public offering (IPO) on Monday where it raised P1.15 billion to fund the expansion of its renewable energy portfolio.
“We are now more mature with our track record of developing and managing hydropower plants with sustainable and exponential growth,” Repower Energy President Eric Peter Y. Roxas said.
“We believe that by going public we can further enhance our value for the benefit of all our shareholders,” he added.
For its IPO, the company offered 200 million primary common shares, with an over-allotment option of up to 30 million shares, priced at P5 apiece.
Repower Energy opened at P5.01, rising as high as P5.20 before closing at P5.04 per share. It trades on the main board of the Philippine Stock Exchange (PSE) under the stock symbol REDC.
The company’s offering attracted participation from Japan-based listed company TOKAI Holdings Corp. It previously said that the foreign firm would take about a 32.5% stake in Repower Energy, earning it a board seat on an observer status.
“We look forward to a long and fruitful business relationship with them in the days to come,” Mr. Roxas said.
Repower Energy said proceeds from the offering would partially fund the equity portion of the 15-megawatt (MW) Pulanai or Pulangi micro-hydroelectric power plant in Valencia City, Bukidnon, and the 4.5-MW Piapi hydropower plant in Mauban, Quezon.
Proceeds will also be used for the development and acquisition of renewable energy projects, and for operating and working capital requirements.
In a statement on Monday, PSE President and Chief Executive Ramon S. Monzon said Repower Energy’s decision to go ahead with its maiden offering amid the deferrals by others goes with his belief that “there is no wrong time for a company to do an IPO.”
“When you need to raise capital for your operations, go for your IPO. The IPO price is not and should not be the be-all and end-all for doing an IPO. Rather, an IPO is just the beginning for a company as it utilizes the IPO proceeds to grow and expand its businesses,” Mr. Monzon said.
The offer period for Repower Energy’s IPO began on June 30 and ended on July 14. The company tapped China Bank Capital Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the offering.
Repower Energy is a subsidiary of Pure Energy Holdings Corp., an investment holding company that aims to strategically acquire assets, develop sustainable natural resources, and be a basic service provider for the needs of the community.
Aside from Repower, the parent firm’s subsidiaries include Just Solar Corp., Pure Geothermal, Inc., and Tubig Pilipinas Group, Inc. — Adrian H. Halili