Repower Energy Development Corp. (REDC), a subsidiary of businessman Dexter Tiu’s Pure Energy Holdings Corp., has received the greenlight from the Philippine Stock Exchange for its initial public offering estimated to raise around P1.15 billion.
REDC will offer 200 million primary common shares at a maximum price of P5 per share with an overallotment option of up to 30 million common shares.
Proceeds from the IPO will be utilized for the Pulanai mini-hydro project in Bukidnon, the Piapi mini-hydro project located in Quezon, the development and acquisition of renewable energy projects, as well as for operating and working capital requirements.
These projects are targeted to come online by 2025.
China Bank Capital is the lead underwriter for 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 under-electrified communities around the country,” said Eric Peter Roxas, president of REDC.
“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 USD 200 per barrel tomorrow or the peso exchange rate dives to USD 1 = P100 one day, we are here to stay and provide a strong dividend yield to our shareholders year-on-year,” Roxas said.
REDC has a three-year track record of profitability, with a net income of P168 million last year and a projected net income of close to P300 million in 2023.
Since its establishment in 2013, Repower has deployed its resources to develop run-of-river hydropower projects in four provinces, namely Laguna, Quezon, Camarines Sur, and Bukidnon.
By June, REDC is commissioning another two new power plants, the 5MW Tibag and 1.4MW Lower Labayat hydropower plants in Quezon.
In just seven years of development, REDC will have eight operating hydropower plants – with all having recurring income.
Projects in the pipeline include onshore wind projects and seawater-pumped storage projects totaling 1,000 MW of renewable energy capacity.