PAMPANGA-based renewable energy developer Raslag Corp. is tapping the stock market to raise funds for its two solar projects – Raslag 4 and 5.
On Wednesday, Raslag Chairman and CEO Peter Nepomuceno said the company would conduct its initial public offering (IPO) from May 24-30, while listing is set for June 6 this year. Nepomuceno said the company plans to sell 350 million primary common shares at P2 each, “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 acquired for Raslag 4 and 5 and is being paid for in installments. Advanced development work, including land use conversion, is also underway for both projects,” Nepomuceno said.
The Raslag founder is also optimistic for the country’s renewable energy sector, especially solar power, as opportunities remain rosy for solar energy companies. Nepomuceno said one of the benefits of solar is that its prices don’t rise relative to volatile coal and fuel prices.
“[T]he price of solar energy is not increasing, but the price of coal, fuel oil and other fuels continues to increase. So eventually, solar becomes cheaper. [It] will be cheaper than coal or other fuels. And in addition, it will help the climate by putting in more renewable energy,” he said.
He expects more renewable energy companies to pursue IPOs to raise the necessary funds for their projects. Meanwhile, Raslag said operation of its 18 megawatt (MW) Raslag 3 solar power plant will begin on May 2.
With the completion of the five projects, Nepomuceno said the company will have a portfolio of 136 MW of clean energy from solar power. “In 10 years, we expect to reach at least 250 MW,” he added.
These capacities will help the government achieve its National Renewable Energy Program to increase the share of renewables in the energy mix to 25% by 2030 and 50% by 2040.