Repower Energy Development Corp. (REDC) has finalized the offer price and size in preparation for its upcoming market debut. On Friday morning, the Philippine Stock Exchange received a disclosure announcement.
REDC has maintained the offer size and share price without making any changes.
They have settled on a final offer size of 200 million primary common shares for their initial public offering, and there is also an overallotment option of up to 30 million secondary common shares in case of strong investor demand.
The share price for REDC’s offering has been set at P5 per share.
The company’s objective through this IPO is to raise P1.15 billion, which will be allocated towards funding their existing hydropower projects totaling 19.5 megawatts, acquiring additional renewable assets, and capital allocation.
Upon a successful IPO, REDC will become the third company to debut on the local stock market this year, following Upson International Corp. and Alternergy Holdings Corp.
The Philippine Stock Exchange aims to achieve a target of P160 billion from companies going public in 2023.
The hydropower company will utilize the majority of the proceeds generated from the share sale for partially financing the equity portion of the Pulanai and Piapi Mini Hydroelectric Power Plants and for the development and acquisition of renewable energy (RE) projects.
According to Ramon S. Monzon, the President and CEO of the PSE, the IPO of RE companies like REDC demonstrates the dedication of the PSE to the objective of the Climate Change Commission in providing capital accessibility to RE firms and supporting climate and sustainability projects.
Repower Energy Development Corp. has outlined plans to expand its installed energy capacity by 1 gigawatt (GW) over the next five years, primarily focusing on hydropower projects.
The President of Repower Energy, Eric Peter Y. Roxas, revealed that the company’s hydropower plants have operated efficiently for the past seven years, boasting an impressive capacity factor of around 72%.
As conveyed by Mr. Roxas in a press release, hydropower offers significantly higher efficiency than solar (12.7%) and wind (33%) technologies.
The company aims to increase its capacity by an additional 1,000 megawatts, focusing on hydropower projects that may include expansions upstream and downstream of existing power plants.
They are also considering the potential of seawater-pumped storage.
Mr. Roxas emphasized that while constructing hydropower plants requires substantial capital investments, the return on investment can be considerable, with recurring income extending well beyond 100 years.
Repower Energy operates six power plants in Laguna, Quezon, and Camarines Sur provinces.
By June, two more power plants are expected to commence operations, resulting in an operational capacity boost of over 60% for the company.
Expressing optimism about the company’s performance in 2023, Mr. Roxas projected a net income of P300 million, representing a significant increase from the previous year’s figure of P168 million.
The Philippine Stock Exchange anticipates 14 initial public offerings (IPOs) this year, surpassing the nine IPOs observed in the preceding year.
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