Repower Energy Development Corp. said Tuesday that the lead underwriter and sole bookrunner of its P1.15 billion initial public offering only tapped a third of the overallotment shares to use its proceeds for the stabilization of stocks of the newly listed renewable energy company.
Repower said China Bank Capital Corp. only acquired from Pure Energy Holdings Corp. a total 10 million of the 30 million allotted for oversubscription and whose proceeds will be used for price stabilization to prevent the share price of the newly listed energy company from falling sharply.
The shares will be sold by China Bank Capital to interested buyers at P5 each, giving the bank a P50 million war chest to stave off profit-takers.
The stabilizing agent may only buy shares of the newly listed company if the stock price has fallen below the IPO price. Repower last traded Monday at P5.05 per share.
