SEC approves Repower IPO, FDC unit's condotel certificates

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The Securities and Exchange Commission (SEC) has approved the planned P1.15 billion initial public offering of Repower Energy Development Corporation, and the public offering of participation certificates by Filinvest Development Corporation’s Fora Services, Inc. for a condotel in Tagaytay.

In a statement, the SEC said the Commission En Banc resolved to render effective the registration statements of Repower Energy covering 650 million common shares and of Fora Services covering 164 certificates of participation, subject to the companies’ compliance with certain remaining requirements.

Repower Energy will offer to the public 200 million common shares priced at up to P5 per share. The initial public offering will also include an overallotment option of up to 30 million common shares to be sold by the company’s shareholder, Pure Energy Holdings Corporation.

The IPO will run from June 5 to 14, 2023 and the shares will be to be listed and traded on the Main Board of the Philippine Stock Exchange (PSE) on June 23, based on the latest timetable submitted to the SEC.

The company expects to net P949.5 million from the offer, which will be used to fund the equity portion of its hydropower projects, the development or acquisition of renewable energy projects, and operating and working capital requirements.

It will not receive any proceeds from the sale of common shares held by its selling shareholder.

Repower Energy 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.

Repower Energy has engaged China Bank Capital Corporation as the sole issue manager, lead underwriter, and sole bookrunner for the transaction.

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Meanwhile, Fora Services will offer to the public 164 certificates of participation in the Quest Hotel Tagaytay Project located in Fora Rotunda Tagaytay in Tagaytay City, with the price of each certificate ranging from P187,700 to P440,700.

The certificates will be offered and sold exclusively to the buyers of the 164 rooms in Quest Hotel Tagaytay, which will be operated and managed as a condotel.

Certificate holders will then be entitled to receive a payment of distributable participation interest annually and room use privilege for up to 14 nights in the condotel per year.

The certificates will be offered and sold by Fora Services’ affiliate, Filinvest Land Inc. through its network of registered brokers and securities salesmen.

Net proceeds from the offering could amount to P33.3 million, which will be used for pre-operating expenses, condotel expenses, technical fees, working capital buy-outs, as well as working capital requirements.

Fora Services is a wholly-owned subsidiary of Filinvest Hospitality Corporation, which in turn is a subsidiary of listed holding firm Filinvest Development Corporation.