initial public offerings

Repower Energy goes public in tepid market

Ralf Rivas

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Repower Energy goes public in tepid market
Repower Energy Development Corporation is just the third IPO this year

MANILA, Philippines – Repower Energy Development Corporation (REDC) debuted on the Philippine Stock Exchange (PSE) on Monday, July 24, amid a challenging market environment.

REDC raised P1.2 billion from the initial public offering (IPO) of its 230 million common shares at P5 a piece and was able to lure Japanese conglomerate Tokai Holdings Corporation as an anchor investor. 

REDC opened 0.2% higher on Monday from its IPO price and went up 2% during the early morning trading.

A subsidiary of Pure Energy Holdings, REDC raised capital to fund the equity portion of its projects in Bukidnon and Quezon province, as well as acquisition of renewable energy projects and operating and working capital requirements.

China Bank Capital was the sole underwriter for the offering.

Since its establishment in 2013, REDC has developed eight hydropower projects in four provinces, namely Laguna, Quezon, Camarines Sur, and Bukidnon.

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 in 2023.

“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 $1 = P100 one day, we are here to stay and provide a strong dividend yield to our shareholders year on year,” Eric Peter Roxas, REDC president, said in a previous news release.

REDC is only the third company to list at the local bourse this year after Alternergy Holdings Corporation and Upson International Corporation.

The PSE earlier aimed for 14 IPOs this year. There were nine IPOs in 2022, the most number of maiden offerings since 2007. The record number of IPOs was in 1994 when 21 companies went public. –

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Ralf Rivas

A sociologist by heart, a journalist by profession. Ralf is Rappler's business reporter, covering macroeconomy, government finance, companies, and agriculture.