Repower Energy Development Corp. said Thursday Japanese conglomerate TOKAI Holdings Corp. will participate as an anchor investor in its planned initial public offering.
REDC said in a statement that under the terms of the agreement, TOKAI would take a 32.5-percent stake from the IPO.
“We are pleased on TOKAI’s commitment to participate in our IPO as this is a testament to the market’s growing interest in our company,” REDC president and chief executive Eric Peter Roxas said.
REDC will allocate a board seat to TOKAI on an observer status. TOKAI is a Japan-based listed conglomerate involved in various sectors such as gas, solar power and real estate.
“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,” Roxas said.
TOKAI, with annual revenues of 180 billion yen, has 39 consolidated subsidiaries and 10 affiliates with investments across retail, commercial and industrial markets.
REDC, a subsidiary of Pure Energy Holdings Corp., is looking to raise P1.15 billion by offering common shares at P5 apiece.
It will offer a total of 200 million common shares, with an overallotment option that would allow the sale of another 30 million common shares.
The company said it would start its offer period on June 30, with the settlement date set on July 14, 2023.
