Raslag: Proceeds from IPO to fund solar power projects
BY LENIE LECTURA – APRIL 14, 2022
from Business Mirror
Local solar energy developer Raslag Corp. will conduct its initial public offering (IPO) on June 6 to raise funds for the company’s planned solar power projects with a combined capacity of 95.2 megawatts (MW).
Raslag is eyeing to raise up to P700 million from the sale of 350 million primary common shares at an offer price of up to P2.00 per share, with an over-allotment option of up to 52.5 million secondary common shares.
The public offer period will run from May 19 to 25 while the listing date is on June 6.
The IPO, said its founder Engineer Peter Nepomuceno, is part of Raslag’s business expansion and development efforts.
“With this, the company will be able to raise up to P700 million that will be mainly channeled to funding the development and construction of its pipeline solar projects, namely RASLAG-4 and 5, and general corporate purposes,” the company said in a statement it released to reporters after officials held an online news briefing.
“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. Raslag now owns a total of 108 hectares of land for 5 solar projects and we are looking to acquire more for our pipeline,” said Nepomuceno.
It has commenced work for the development of the 35.2-megawatt peak (MWp) RASLAG-4 solar plant and has acquired the site for the 60 MWp RASLAG-5 solar plant, both in Pampanga. RASLAG IV will cost P1.5 billion while the project cost for RASLAG V is estimated at P2.1 billion.
A pioneer in the country’s grid-scale solar energy development, Raslag currently has two solar power plants: the 10.046MWp RASLAG-1 and the 13.141 MWp RASLAG-2. Both are running under the Feed-in-Tariff (FIT) system of the Department of Energy (DOE) with a base tariff of P9.68/kWh and P8.69/kWh, respectively.
According to Nepomuceno, securing these long-term contracts with the government provided the company a steady stream of cash flow to reinvest in the business for expansion and raise equity. The FIT scheme also encouraged and accelerated the demand for renewable energy, which they wanted to maximize.
At the same time, Nepomuceno announced that the 18.011 MWp RASLAG-3 in Mabalacat and Magalang, Pampanga will commence operation on May 2.
“We are now able to generate more solar energy for less land and for even less cost. This makes solar energy a particularly attractive option in the country, which is in line with DOE targets.”
Anchored on the Nepomuceno family’s long history of building enduring businesses, institutions, and landmarks in Pampanga, Raslag assures that it will be a solid partner to investors, one that is focused on delivering sustainable, profitable, and high-quality growth for all shareholders.
“We started Raslag in 2013 in response to the government’s push for renewable energy as well as to address the projected demand for clean power,” said Nepomuceno.
