Green Power Panay Philippines Inc., a company engaged in developing renewable energy resources, increased the size of its initial public offering to P775 million.
GPPPI said in a recent filing with the Securities and Exchange Commission it would offer 155 million common shares at an offer price of up to P5 apiece. The offer shares represent 20 percent of the company’s outstanding capital stock.
Net proceeds from the company’s maiden share offering will be used for the development of a 35-megawatt biomass power plant in Iloilo and the operation of biomass feedstock.
The company tapped Abacus Capital and Investments Corp. as issue manager and underwriter for the offering.
GPPPI said it planned to build a biomass collection, transportation, densification, storage and distribution facility by the third quarter of 2017. This facility will enable the company to generate cash-flow by selling densified biomass field to the domestic and international markets.
It will also initially construct a 17.5-MW biomass power plant, which is slated to be operational by the fourth quarter of 2018. The power plant plans to sell its generated electricity to the national grid under the feed-in tariff scheme and potentially to Iloilo electricity cooperatives.
It will develop another 17.5-MW biomass power plant and will expand its densification facility from 60,000 metric tons per annum to 240,000 MT per annum.
GPPPI, through affiliated companies Global Biomass Panay Inc. and Global Biomass PLC Corp., has in excess of 3.4 million tons of biomass under long term contracts throughout the Philippines.