Solar firm taps IPO to fund two new projects

[ASEAN NOW News]

SOLAR POWER. Raslag 3 project of local solar firm Raslag Corp. in Pampanga. The company is set for an initial public offering to fund its two projects in the pipeline -- Raslag 4 and 5. (Photo from Raslag website)

 

MANILA – Pampanga-based renewable energy developer Raslag Corp. is tapping the stock market to raise funds for its two solar projects -- Raslag 4 and 5.

 

In a virtual media roundtable Wednesday, Raslag president and chief executive officer Peter Nepomuceno said the company would run its initial public offering (IPO) from May 24 to 30, while the listing is set on June 6 this year.

 

Nepomuceno said the company is eyeing to sell 350 million primary common shares at PHP2 apiece, “with an over-allotment option of up to 52.5 million secondary common shares."

 

He added that Raslag 4 project costs PHP1.55 billion while Raslag 5 at around PHP2.1 billion.

 

“Land has already been acquired for Raslag 4 and 5 and is being paid on installment basis. Advanced development works, including land use conversion, are currently ongoing for both projects as well,” Nepomuceno said.

 

The Raslag founder is also optimistic for the country’s renewable energy sector, especially solar power, as opportunities remain rosy for solar power firms.

 

Nepomuceno said one of the advantages of solar is that its prices do not go up as compared to the volatile prices of coal and fuel.

 

“The price of solar does not go up, but the price of coal and bunker fuel and other fuels keeps going up. So eventually, solar becomes cheaper. It will be cheaper than coal or other fuels. And besides, it will be helping the climate by putting in more renewables,” he said.

 

He expects that more renewable energy companies will be pursuing public listing to raise the needed fund for their projects.

 

Meanwhile, Raslag said the operation of its 18-megawatt solar plant Raslag 3 will start on May 2.

 

With the completion of the five projects, Nepomuceno said the company will have a portfolio of 136 MW of clean power from solar.

 

“In 10 years, we plan to hit at least 250 megawatts,” he added.

 

These capacities will help the government to achieve its National Renewable Energy Program of increasing renewable energy share in the power mix to 25 percent by 2030 and to 50 percent by 2040. (PNA)

 

Join our 3 x a week Philippines News, Travel and Expat information newsletter and keep up to date. https://aseannow.com/newsletter.php