The share price of Repower Energy Development Corp. was little changed in inaugural trades at the Philippine Stock Exchange on Monday that saw the company braving lackluster market conditions.
Repower shares closed less than 1 percent higher to P5.04 per share from initial public offering price of P5. It opened at P5.01 then rose to P5.20 but nearly succumbed to profit-taking in afternoon trades.
“The listing of Repower Energy and Development Corp. was indeed a long and eye-opening journey. Since September 2022 or so, we have to hold weekly meetings and work through a long list of regulatory requirements,” Eric Peter Y. Roxas, president and CEO of Repower, said.
A total 200 million common shares at P5 per share have been offered to the public and an over-allotment option that allows for the sale of up to 30 million common shares.
The PSEi, the benchmark index, closed lower by 16.31 points on Monday to 6,631.25 after three consecutive days of market gains.
Market watchers said investors waited for President Ferdinand Marcos Jr to deliver his message at his state of the nation address seen crucial in shaping investor sentiment. Given this, many stayed on the sidelines with net market value turnover of only P2.77 billion, lower than average of P3.93 billion this month thus far,” Claire Alviar, research and engagement officer at Philstocks Financial Inc, said.
Redpower earlier said Tokai Holdings Corp., a Japanese conglomerate with interests in gas, solar power and real estate, served as anchor investor of the IPO.
Tokai has committed to purchase up to 32.5 percent of shares available for sale, a transaction that could result in acquiring nearly 10 percent of the post-IPO outstanding shares.
Gross proceeds from the primary share sale was estimated at P1 billion which will fund the equity portion of its hydropower plans, the development and acquisition of renewable energy projects and its operating and working capital needs.
The equity portion relates to the 15-megawatt Pulanai mini hydro plant project in Bukidnon and the 4.5 megawatt Piapi MHP project in Quezon Province.
China Bank Capital Corp. served as issue manager, lead underwriter, and sole bookrunner for the transaction.
