NexGen Energy Corp. closed at P1.71 per share at its maiden listing yesterday, higher by P0.30 from its initial public offer (IPO) price of P1.68.
The company raised P529.2 million from its fund raising exercise two weeks ago where the renewable energy company sold to the public 300 million primary shares and another 15 million secondary shares out of a planned 340 million shares IPO.
NexGen, which is a sister company of Repower Energy Development Corp. (REDC) will receive for itself P504 million of the proceeds from the primary shares. The proceeds of secondary shares worth P25.2 million will go to mother company, Pure Energy Holdings Corp.
At the company’s listing ceremony, Eric Peter Roxas, NexGen chief executive officer, said although the IPO is a small issue, the funds raised will jumpstart a basket of projects with the company’s target of developing over 1,600 megawatts composed of several solar energy service contracts and 12 wind energy service contracts.
“REDC will play an important factor in the completion of these projects,” Roxas said.
The company will use its share of the proceeds to partially finance its renewable energy projects in Zambales, Cavite, and other parts of the country – Palauig 2 Zambales solar project; Silang Maragondon wind project; and Asisan wind project.
The proceeds will also be used to partially fund the development and acquisition of renewable energy projects, fund operating and working as well as fund the development of the power facilities for a climate controlled indoor farm.
The company tapped China Bank Capital Corp. as the sole issue manager and sole bookrunner for the offer, with Investment & Capital Corporation of the Philippines to serve as joint lead underwriter.
Established in 2017, NexGen currently operates three solar plants through its subsidiary SPARC-Solar Powered Agri-rural Communities Corp., with an aggregate capacity of 13.859 megawatts-peak. Its two other main subsidiaries, 5-hour Peak Energy Corp. and Airstream Renewables Corp., are engaged in solar and wind projects, respectively.
