PAMPANGA-based renewable energy developer Raslag Corp. is using the stock market to raise funds for its two solar projects – Raslag 4 and 5.
On Wednesday, Raslag President and Chief Executive Officer Peter Nepomuceno said the company would conduct its initial public offering (IPO) on May 24-30, while the listing is scheduled for June 6 this year. Nepomuceno said the company intends to sell 350 million primary common shares at P2 apiece, “with an over-allotment option of up to 52.5 million secondary common shares.”
He added that the Raslag 4 project costs 1.55 billion pesos, while Raslag 5 is around 2.1 billion pesos. “Land has already been purchased for Raslag 4 and 5 and will be paid for on an installment basis. Advanced development work, including land use conversion, is also currently underway for both projects,” said Nepomuceno.
The Raslag founder is also bullish on the country’s renewable energy sector, particularly solar, as the opportunities for solar energy companies remain bright. Nepomuceno said one of the advantages of solar is that its prices are not increasing compared to the volatile prices of coal and fuel.
“[T]The price of solar power isn’t going up, but the price of coal and bunker fuel and other fuels is going up. Ultimately, solar will become cheaper. [It] cheaper than coal or other fuels. And it will also help the climate by using more renewable energy,” he said.
He expects more renewable energy companies to seek public listings to raise the funds needed for their projects. Meanwhile, Raslag said that its 18-megawatt (MW) Raslag 3 solar power plant will begin operating on May 2.
With the completion of the five projects, Nepomuceno said the company will have a portfolio of 136 MW of clean solar power. “In 10 years, we plan to reach at least 250 MW,” he added.
These capacities will help the government achieve its national renewable energy program, which increases the share of renewable energy in the electricity mix to 25 percent by 2030 and 50 percent by 2040.
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