PSE President and CEO Ramon S. Monzon
PSE President Ramon S. Monzon said “(REDC) braved the IPO market even as bigger companies dared not go. Needless to say, it was amply rewarded for its decision. It was able to raise its target amount of capital and at the indicative price of P5.00 per share initially set for its IPO.”
“More impressive is the fact that the company was able to attract the Tokyo Stock Exchange-listed Tokai Holdings Corporation to be an anchor investor in its maiden offering,” he added.
Monzon noted that, “A number of companies have recently deferred their IPO plans purportedly due to poor market conditions. They were apprehensive that they might not be able to get the IPO price they want or were promised.”
“For me, such apprehension is misplaced. I believe there is no wrong time for a company to do an IPO. When you need to raise capital for your operations, go for your IPO. The IPO price is not and should not be the be-all and end-all for doing an IPO,” he said.
Monzon explained that, “Rather, an IPO is just the beginning for a company as it utilizes the IPO proceeds to grow and expand its businesses. It has been proven many times at PSE that when a listed company has a good story, promising business prospects, and capable and talented management, the company’s stock price will surely reflect the same.”
The bulk of the funds raised by REDC from the IPO will be used to partially fund the equity of two mini hydroelectric power plants.
Construction on these power plants started early this year. They are expected to start commercial operations in the fourth quarter of 2025 and will add a total of 19.5 megawatts in capacity to REDC’s portfolio.
REDC is the hydropower arm of Pure Energy Holdings, led by businessman Dexter Y. Tiu. The company oversees the operation of a total of six hydropower plants with a combined capacity of 10.146 megawatts.
The firm has engaged China Bank Capital Corporation as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.
