Repower up in market debut

MANILA, Philippines — Repower Energy Development Corp. (REDC) successfully made its debut on the Philippine Stock Exchange yesterday, closing slightly higher than its initial public offering price of P5.04 per share.

REDC is a subsidiary of Pure Energy Holdings Corp., which also planned to list back in 2017 but did not push through with its IPO.

“Pure Energy’s IPO plans then may not have materialized but today, six years later, PSE welcomes its subsidiary REDC to the exchange’s growing roster of listed renewable energy firms.

A number of companies have recently deferred their IPO plans purportedly due to poor market conditions.

They were apprehensive that they were not able to get the IPO price they want...For me, such apprehension is misplaced.

I believe there is no wrong time for a company to do an IPO. When you need to raise capital for your operations, go for your IPO.

The IPO price is not and should not be the be all and end all for doing an IPO rather an IPO is just the beginning for a company as it utilizes the IPO proceeds to grow and expand,” PSE president and CEO Ramon Monzon said yesterday.

Tokyo Stock Exchange-listed TOKAI Holdings Corp. participated in REDC’s IPO as an anchor investor. The Japan-based listed conglomerate, which is involved in various sectors such as gas, solar power, and real estate, took a 32.5 percent stake out of REDC’s IPO.

Eric Peter Roxas, president and CEO of REDC, said the company is taking advantage of the synergies available to the company as a result of its partnership with TOKAI.

During yesterday’s listing, Roxas said that by going public, REDC is able to enhance its value for its shareholders and stakeholders.

For its public listing, REDC successfully raised P1.15 billion by offering common shares at P5 per piece.

REDC offered a total of 200 million common shares with an over-allotment option of 30 million common shares.

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.

Earlier, it successfully commissioned a new power plant in Mauban, Quezon.