Repower share price little changed on market debut

By VG Cabuag @villygc

The share price of Repower energy Development Corp., a subsidiary of Pure energy holdings Corp., was little changed during its debut in the Philippine Stock exchange (PSe) on Monday.

Repower’s shares closed less than 1 percent higher to P5.04 from the initial public offering (IPO) price of P5. It opened at P5.01 before climbing to P5.20, but almost succumbed to profit-taking during the afternoon trade.

“The listing of Repower Energy and Development Corp. or REDC was indeed a long and an eye-opening journey. Since September of 2022 or so, we had to hold weekly meetings and work through a lot of lists, a long list of regulatory requirements,” Eric Peter Y. Roxas, president and CEO of Repower, said during his speech.

“This is the very reason why we are here today to be able to generate more funds. So we can build more plants to enhance shareholder value and in our own small way, contribute to preserving the environment and uplifting the lives of our fellow Filipinos.”

A total of 200 million common shares at P5 per share has been offered to the public, with an overallotment option that allows for the sale of up to 30 million common shares.

Meanwhile, the benchmark PSE index fell by 16.31 points to close at 6,631.25, after posting gains for three consecutive days.

“Investors were also waiting for the President’s State of the Nation Address later which would be crucial in shaping investors’ sentiment. Given this, many stayed on the sidelines with the net market value turnover recording at P2.77 billion, lower than this month’s average so far of P3.93 billion,” Claire Alviar, Research and Engagement Officer at Philstocks Financial Inc., said.

Repower said Tokai Holdings Corp., a Japan-based conglomerate with interests in sectors such as gas, solar power and real estate, served as an anchor investor in its IPO.

Tokai has committed to purchase up to 32.5 percent of shares available for sale in the IPO, a transaction that could result in the ownership of almost 10 percent of its post-IPO outstanding shares.

The primary shares have gross proceeds of about P1 billion for the company.

Of the primary proceeds, the company plans to use it to fund the equity portion of its hydropower projects, the development and acquisition of renewable energy projects and operating and working capital requirements.

In particular, the company will use the proceeds to fund the equity portion of the 15-megawatts Pulanai MHP project located in Bukidnon and the equity portion of the 4.5MW Piapi MHP project in Quezon Province.

China Bank Capital Corp. served as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.