Energy firm eyes P1.47B from IPO

By Riza Lozada 

The Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of local investment holding firm Pure Energy Holdings Corp. (PEHC) that the company hopes can raise for it P1.47 billion in new capital. 

SEC documents showed that PEHC will offer 930 million primary shares with an option to sell 46.5 million shares more for P1.62 per piece.

It targets to use the proceeds from the sale of primary shares to fund the cash portion of hydropower projects, pre-develop joint-venture 20 mini hydropower projects totalling 70.8 megawatts, and for its operating and working capital over the next three years.

PEHC currently has three subsidiaries, which are Repower Energy Development Corp (REDC) and Pure Geothermal which are holding firms in the business of renewable energy; and Pure Water, a holding company of businesses that act as bulk water provider, distribution utility and wastewater treatment service provider.

The Philippine Stock Exchange (PSE) expects six to eight companies to go public this year.

Construction materials retailer Wilcon Depot Inc. is the first company in the country to launch an IPO this year on March 31.

Wilcon, the first home improvement and construction supply retail company to be listed on the PSE, will sell up to 1.393 billion primary shares at a maximum offer price of P5.68 per share.

Proceeds of the offer will fund the expansion of its store network, repay existing debts and for other general corporate purposes.

Part of its expansion plans is to establish a foothold in fast-growing cities outside of Metro Manila by putting up 28 stores in the next five years.

The company appointed First Metro Investment Corp. as the issue manager and bookrunner, and together with BDO Capital & Investment Corp. as joint lead underwriter for the IPO.

First Metro executive vice president and head of investment banking Justino Juan Ocampo said, “We anticipate strong demand for the Wilcon Depot offering given its growth story and the promising opportunities in the home improvements and construction supply retailing space.”

Ocampo said the company is expected to benefit from heightened construction activities in the country, rising demand for housing units and the robust economic growth.

“This IPO is also the first this year and for investors who have long been waiting for a singularly exceptional investment opportunity, this is it,” added Ocampo.

Wilcon Depot now operates a total of 37 stores strategically located nationwide.