Repower Energy Development Corporation (“REDC”), a subsidiary of Pure Energy Holdings Corporation, on Thursday said the Philippine Stock Exchange and the Securities and Exchange Commission gave their respective approvals for the company to pursue an initial public offering.
REDC will offer 200 million primary common shares for an offering price of up to P5 per share with an overallotment option allowing for the sale of up to 30 million common shares.
The company plans to use the proceeds from the IPO to partially fund the equity portion of the Pulanai MHP project located in Bukidnon, the equity portion of the Piapi MHP project located in Quezon, the development and acquisition of renewable energy projects, and its operating and working capital requirements.
China Bank Capital will serve as the lead underwriter of the offering.
“We are pleased to receive regulatory approvals for our IPO, given this is a major step for us to be able to expand our presence in bringing clean and renewable energy to underserved communities around the country,” Eric Peter Roxas, REDC president, said.
“Unlike other renewable energy companies that did an IPO with net losses and selling a
pipe 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 USD 1 = Php 100 one day, we are here to stay and provide a strong dividend yield to our shareholders year on year. ”
REDC has a three-year track record of profitability, with a net income of P168 million in 2022, and projected net income of close to P300 million this 2023. It is just awaiting the lending banks’ final approval before a dividend declaration can be declared to the company’s shareholders.
Since 2013, REDC has deployed its resources to develop run-of-river hydropower projects in four provinces, namely Laguna, Quezon, Camarines Sur, and Bukidnon.
Its major milestones include the acquisition of the legacy Philippine Power and Development Company – owner of the three oldest operating run-of -river hydropower plants built by the Americans in 1927 after World War I, starting from a minority stake the acquisition of the majority stake of Majayjay Hydropower Company Inc., and the acquisition of the 30-year-old Bicol Hydropower Corporation.
In June, REDC will commission two new power plants, the 5-megawatt Tibag and 1.4-megawatt Lower Labayat hydropower plants in Quezon.
In only seven years of development, REDC will have eight operating hydropower plants all of which having recurring income.
Since March this year, construction is ongoing for the 15-megawatt Pulanai and the 4.5-megawatt Piapi mini hydropower projects, located in Bukidnon and Quezon respectively. These projects are targeted to come online by 2025.
Projects in the pipeline include onshore wind and seawater pumped storage projects totaling 1,000 MW of renewable energy capacity.
