Repower Energy Development Corp. said Japan’s TOKAI Holdings Corp. is acquiring 32.5 percent of its P1.15 billion initial public offer (IPO) as an anchor investor.
Tokai, which has exposures in the businesses of gas, solar power, and real estate, will then have a seat in the company’s board of directors on an observer status.
“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,” said said Eric Peter Roxas, Repower president.
TOKAI, with annual revenues of 180 billion yen, has 39 consolidated subsidiaries and 10 affiliates with investments across retail, commercial and industrial markets.
Repower is looking to sell to the public 200 million common shares and another 30 million secondary shares covering the greenshoe option at an offer price of P5.
Of the primary proceeds, the company plans to use the proceeds to fund the equity portion of its hydropower projects, the development and/or acquisition of renewable energy projects, and operating and working capital requirements.
The company will use the proceeds to fund the equity portion of the 15-megawatts (MW) Pulanai MHP project located in Bukidnon; the fund the equity portion of the 4.5MW Piapi MHP project in Quezon Province.
The offer runs between June 30 and July 14. Listing is eyed on July 24.
The company tapped China Bank Capital Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.
