Stock Commentary

NexGen Energy files for P0.6-B IPO

Merkado Barkada
NexGen Energy files for P0.6-B IPO

NexGen Energy [XGEN 1.68 pre-IPO] [link] has filed with the SEC to conduct an IPO to raise up to P580 million through the sale of primary shares at P1.68/share with a secondary over-allotment option. XGEN is a renewable energy company (wind and solar), and expects the proceeds of the sale to “partially fund” development of three projects (one solar, two wind). China Bank Capital [CHIB 39.10, up 0.1%; 164% avgVol] is the joint lead underwriter on the deal along with Investment and Capital Corp. of the Philippines. XGEN is a subsidiary of Pure Energy Holdings (PEH), which is headed by Dexter Tiu. PEH is also the parent company of Repower Energy Development Corp [REDC 5.10 unch; 88% avgVol], which was also brought to market with CHIB.

MB bottom-line: I’ll go through the prospectus later, but for now I’m just putting this one out there so that we all know what’s coming. At first glance, the XGEN deal looks very similar to the one that brought its sister company REDC to market less than a year ago. Keep in mind that XGEN and REDC are not the same company, and they’re not listing at the same time, but they share a lot of superficial DNA, they play in the same arena (renewable energy development), and they’re looking to take advantage of the same macro trends (electricity price increases; green energy tailwinds). I love the ticker, though. Brings me back to the 90s! Xtreme renewable energy!


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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

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