Repower Energy Development Corporation [REDC 5.00 pre-IPO] [link] set its final offer price at P5.00/share for its upcoming IPO, which is the same as the price contained in the preliminary prospectus.
No other details appear to have changed, as the company is still looking to sell a firm offer of 200 million primary common shares and an over-allotment option of 30 million secondary common shares, for a total of 230 million shares.
This would raise P1.15 billion, with P1 billion in gross proceeds going back to REDC for use in its renewable energy business, and around P150 million going to the selling shareholders to fund the over-allotment/stabilization fund. REDC’s offer period will run from June 28 to July 14, with its IPO scheduled for July 24.
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According to REDC, the company considered four comparables to help set its price: ACEN [ACEN 5.18 1.4%; 43% avgVol], Aboitiz Power [AP 37.55 0.1%; 51% avgVol], First Gen [FGEN 18.86 unch; 11% avgVol], and Raslag [ASLAG 1.48 unch; 5% avgVol].
They considered AP and ASLAG to be the most “on-point”. While a few news outlets have referred to REDC as a Tiu Family company, the REDC management team pointed out that their company shares common directors with the Tiu Family’s Coal Asia Holdings [COAL 0.18 1.6%; 420% avgVol], but that REDC is actually the product of a breakaway initiative by Dexter Tiu and Eric Peter Roxas that arose out of disagreements on the direction of COAL.
Mr. Roxas said that it is not accurate to consider REDC or its parent company, Pure Energy Holdings, to be Tiu Family companies, as both were started by Dexter and Eric as a way to forge a new course separate and apart from the family and the direction of COAL.
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