Tiu’s renewable energy arm eyes P500-M IPO in July
NexGen Energy Corp., a subsidiary of businessman Dexter Tiu’s Pure Energy Holdings Corp., is targeting to raise P500 million from an initial public offering (IPO) and bankroll renewable energy (RE) projects in the pipeline this year.
In a message to the Inquirer, NexGen president Eric Peter Roxas said the target would be to launch the IPO by July.
Proceeds will fund solar and wind projects with a combined capacity of more than 2,350 megawatts (MW) over the next 10 years, NexGen said in a separate statement.
Roxas said the cost of solar power projects was pegged at $750,000 to $800,000 per MW.
In the case of onshore wind projects, the cost per MW is estimated to range between $1 million to $1.5 million.
Meanwhile, Roxas said the projected cost of offshore wind facilities was $2 million per MW.
NexGen holds eight wind energy service contracts through its unit Airstream Renewables Corp. while four others are being consolidated into Airstream.
It also applied with the Department of Energy to obtain service contracts for building solar power projects and is awaiting the review of several government agencies for big-ticket unsolicited proposals.
“We are excited about NexGen’s role in helping to secure the country’s energy supply needs. We support the [DOE’s] goal of achieving a 35-percent renewable energy share by 2030,” Roxas said.
NexGen was established in 2017 as the development arm of Pure Energy. its main business is to harness cleaner energy sources including solar, wind, hydropower, biomass and biogas.
The RE developer has solar, onshore and offshore wind power plants in Luzon and Visayas.
NexGen intends to grow the business through the acquisition of strategically located solar and wind farms with high potential, expanding the capacity of these farms depending on the demand of the host distribution utility and contestable customers in a particular area.
It also aims to expand the portfolio by enter the floating solar market, offshore wind and exploring opportunities around Asia.
NexGen’s subsidiaries are: SPARC-Solar Powered Agri-rural Communities Corp., operator of three solar farms in the provinces of Zambales, Bataan and Bulacan; 5Hour Peak Energy Corp., which plans to develop 1,000 MW-peak solar projects; and Airstream, which would undertake up to 1,330 MW of onshore and offshore wind facilities.
Parent firm Pure Energy is a holding company formed in 2013 whose business mainly involves RE generation as well as water system management and distribution.
Another Pure Energy unit, Repower Energy Development Corp., had raised P1.15 billion from its stock market debut in June last year.
