Repower Energy Development Corp. (REDC) said it has gained the approval by the Philippine Stock Exchange (PSE) for its P1.15 billion initial public offering (IPO).
Repower Energy is looking to offer to the public an initial 200 million primary common shares, and another 30 million secondary shares owned by company shareholder Pure Energy Holding Corp., at an offer price of up to P5 per share.
The company plans to used the proceeds of the primary share sale to to fund the equity portion of its hydropower projects, the development and acquisition of renewable energy projects, and operating and working capital requirements.
In particular, the company will use the proceeds to fund the equity portion of the15-megawatts (MW) Pulanai MHP project located in Bukidnon; the fund the equity portion of the4.5MW Piapi MHP project in Quezon Province.
China Bank Capital will serve as the lead underwriter for the offering.
The company eyes to have its IPO between June 5, 2023 and June 14, 2023, with listing eyed on June 23, 2023.
Repower Energy is the hydropower arm of Pure Energy Holdings, led by businessman Dexter Y. Tiu. It develops mini-hydropower projects through a “clustered approach method” where several projects are in a target area providing for shared economies of scale through common infrastructure, reducing the cost of development and improving the bottom line.
The company oversees the operation of a total of six hydropower plants with a combined capacity of 10.146 megawatts. Its has 124MW of mini-hydropower projects clustered in Laguna, Quezon, Camarines Sur, Bukidnon, and other provinces under development.
By June, it is commissioning another 2 new power plants, the 5MW Tibag and 1.4MWLower Labayat hydropower plants in Quezon.
“In just seven short years of developmentperiod, REDC will have eight operating hydropower plants — with all having recurring income,” the company said in a statement.
“In addition, since March of this year construction is ongoing for the Pulanai andPiapi MHP projects, located in Bukidnon and Quezon respectively. These projects are targetedto come online by 2025,” it added.
Other projects in the pipeline include onshore wind projects and SEAwater pumped storage projects
totaling 1,000MW in renewable energy capacity.
“This is a major step forus to be able to expand our presence in bringing clean and renewable energy to under-electrified communities around the country,”Eric Peter Roxas, REDC president, said of the IPO approval.
“Unlike other renewable energy companies that did an IPO with net losses and selling apipe dream, REDC is a solid company with recurring net income that grows
exponentially. Our business model is pandemic proof, crises proof, whether oil hits $200 per barrel tomorrow or the peso exchange rate dives to$1:P1 one day, weare here to stay and provide a strong dividend yield to our shareholders year on year,” he added.
REDC closed 2022 with a profit of P168 million. It looks to bookP300 million in profit this year.
