REDC pegs IPO price at P5/share

MANILA, Philippines — Repower Energy Development Corp. (REDC), a subsidiary of Pure Energy Holdings Corp., has set its final offer price at P5 per share, according to a regulatory filing yesterday.

“The final number of offer shares is 200,000,000 primary common shares with an over-allotment option of up to 30,000,000 secondary common shares, and the final Offer Price is P5 per offer share,” Repower said in a disclosure to the Philippine Stock Exchange (PSE).

The company earlier secured the green light from the PSE and the Securities and Exchange Commission for its planned stock market debut.

REDC intends to use the proceeds to fund the equity portion of its hydropower projects, the development and acquisition of renewable energy projects, and operating and working capital requirements.

At present, the company operates six hydropower plants with a combined capacity of 10.146 megawatts.

REDC also said that it was set to commission another two new power plants, the five-MW Tibag and 1.4-MW Lower Labayat hydropower plants in Quezon.

This will translate to eight operating hydropower plants for REDC.

In addition, since March of this year, construction is ongoing for the 15-MW Pulanai and 4.5-MW Piapi projects, located in Bukidnon and Quezon respectively.  These projects are targeted to come online by 2025.

Projects in the pipeline include onshore wind projects and water pumped storage projects totaling 1,000 MW of renewable energy capacity.

For its planned IPO, which is targeted for this year, REDC tapped China Bank Capital Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.

Since its establishment in 2013, REDC has deployed its resources to develop run of river hydropower projects in four provinces, namely Laguna, Quezon, Camarines Sur, and Bukidnon.

The company’s tentative listing date is July 24.