BCPG Pcl, a renewable energy unit of Thailand’s oil refinery Bangchak Petroleum Pcl (BPC), expects to raise over 3 billion baht ($85 million) from selling not exceeding 600 million shares in an initial public offering (IPO) in the third quarter.
The IPO shares makes up for 30 per cent of its registered and paid capital at the par value of 5 baht apiece, according to the company’s filing to the Office of the Securities and Exchange Commission.
Most of the proceeds will be poured into aggressive investment in renewable energy projects domestically and internationally, BCP president Chaiwat Kovavisarach said.
The company has 14 solar power plants, some of which are under construction, and it is in talks to co-invest in one more solar farm in Japan.
Additionally, it is also evaluating to invest in other types of renewable energy such as geothermal power generator, wind turbine, biogas, biomass and waste-to-energy power plants. He said, it could develop the projects itself or acquire existing ones in Thailand and overseas particularly in North Asia.
The filing cited that some of the IPO shares will be offered to BPC’s existing shareholders and the remaining will be sold to the public. It has appointed Kasikorn Securities, Finansa Securities and Tisco Bank as financial advisors to IPO, and it has a policy to pay dividend not less than 40 per cent of the net profit.
To date, BCPG has 47 affiliates, of which six are in Thailand with a combined electricity generating capacity of 118 MW while 41 are overseas with capacity of 164 MW.
It reported net profit of 2.08 billion baht in 2015, increasing from 1.86 billion baht in 2014. The net profit margin is around 68.6 per cent.
It has a registered capital of 10 billion baht, divided into 2 billion ordinary shares at the par value of 5 baht. It has a paid-up capital of 7 billion baht, divided into 1.4 billion shares.