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Saturday, May 18, 2024

IPO-bound Repower eyes P15-b capex to build 50 MW of projects

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Repower Energy Development Corp., a subsidiary of Pure Energy Holdings Corp., is looking at a capital expenditure budget of P15 billion to develop 50 megawatts of capacity and other possible RE projects in the next three to five years.

Its projects under development include the 15-megawatt Pulanai mini-hydro power plant in Bukidnon and the 4.5-MW Piapi mini-hydro power plant in Quezon which are expected to come online by 2025.

“The balance of the 30 MW will come from the low-hanging projects that are in advanced development stage and being developed under our affiliates,” the company said.

REDC’s portfolio of operating and income-generating mini-hydro power plants include the 1.5-MW Palakpakin, 1.1-MW Balugbog, 300-kilowatt Calibato, 2.19-MW Majayjay, 1.6-MW Inarihan, 3.456-MW Upper Labayat, 5-MW Tibag and 1.4-MW Lower Labayat.

The Tibag and Lower Labayt power plants in Quezon will come online by June 2023.

The Philippine Stock Exchange and the Securities and Exchange Commission approved REDC’s planned initial public offering.

REDC will offer 200 million primary common shares for up to P5 apiece, with an overallotment option for another 30 million common shares.

The company plans to use the proceeds from the IPO to fund the equity portion of the Pulanai and Piapi power project, the development and acquisition of renewable energy projects and fund operating and working capital requirements.

China Bank Capital will serve as 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,” REDC president Eric Peter Roxas 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,” Roxas said.

He said REDC’s business model is pandemic and crisis-proof. “Whether oil hits $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 in 2022 and a projected net income of close to P300 million in 2023.

The company is also looking at onshore wind projects and seawater-pumped storage projects totaling 1,000 MW of RE capacity.

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