MANILA, Philippines — Japan-based conglomerate TOKAI Holdings Corp. will participate in the initial public offering of Repower Energy Development Corp. (REDC) as an anchor investor.
Soon-to-list REDC, a subsidiary of Pure Energy Holdings Corp., said the listed conglomerate, which is involved in various sectors such as gas, solar power, and real estate, will take a 32.5 percent stake out of REDC’s IPO.
In return, REDC will allocate a board seat for TOKAI, said Eric Peter Roxas, president and CEO of REDC.
“We are pleased with TOKAI’s commitment to participate in our IPO as this is a testament to the market’s growing interest in our company,” Roxas said.
“We look forward to taking advantage of the synergies available to us as a result of our partnership with TOKAI, such as our expansion into the Japanese renewable energy market, specifically run-of-the-river hydropower projects where our expertise and TOKAI’s reach in Japan will prove invaluable,” he said.
TOKAI is mainly focused on the energy business. It has annual revenues of 180 billion yen, and 39 consolidated subsidiaries and 10 affiliates with investments across retail, commercial and industrial markets.
REDC plans to debut on the stock market on July 24, seeking to raise P1.15 billion.
A total of 200 million common shares were offered starting June 30, with an over-allotment option of 30 million common shares.
REDC intends to use the proceeds to fund the equity portion of its hydropower projects, the development and acquisition of renewable energy projects, and operating and working capital requirements.
At present, the company operates six hydropower plants with a combined capacity of 10.146 megawatts.
Early last month, it successfully commissioned a new power plant in Mauban, Quezon.
The company’s next project will be its eighth hydropower plant, a 1.4-MW Lower Labayat plant, also in Quezon, which will come online soon.
With its hydropower plants, the company plans to continuously expand its footprint in the renewable energy sector.