Three institutional investors have confirmed they will subscribe 201 million initial public offering (IPO) shares of B.Grimm Power Plc, of which the first day of trade is scheduled for July 19.
The investors are Asian Development Bank, Muang Thai Life Assurance and Thai Life Insurance, said B.Grimm Power's chief executive Preeyanart Soontornwata.
The company announced an indicative price range of 15 to 16.50 baht per share for 651.8 million newly issued shares, with a greenshoe option not exceeding 65.1 million shares.
Proceeds from the IPO sales are projected to be 10.8 billion baht, or 11.8 billion if the greenshoe option is fully exercised. The price will be finalised on July 7.
Of the total 651.8 million IPO shares, 284 million shares or 55.5% will be allocated to customers of nine underwriters and institutional investors, with 201 million shares going to three cornerstone investors and the remaining 166.8 million to foreign investors.
Ms Preeyanart said the funds raised would also go for loan repayment, which should cut the debt-to-equity ratio to 1.5 to 2 times, down from 3.4 times in the first quarter of 2017.
The company set a target to increase its power-generating capacity to 5,000 megawatts over the next few years, up from 2,357MW.
From this year to 2021, it expects at least 15 projects will be constructed and start commercial operation, leading to rising revenue for the company as more power purchase agreements are signed.
Major projects that would increase revenue over the next five years include two hydropower plants in Laos with total capacity of 20MW that are due to start commercial operation next month. The two plants are estimated to generate revenue of 200 million baht a year, she said.
In 2018, an additional 414MW of power-generating capacity is expected, with three cogeneration plants in Amata City Industrial Estate in Rayong contributing 399MW, and a hydropower plant in Laos adding 15MW.
For 2019, five more hydropower plants in Laos with total installed capacity of 68MW are due to come online, then two wind farms with capacity of 16MW the next year. Three cogeneration plants in VRM Industrial Estate with capacity of 240MW are also due in 2020.
The company is conducting feasibility studies about possible power investments in Indonesia, Myanmar, Malaysia, Vietnam, Cambodia and the Philippines, said Ms Preeyanart.
For long-term investment, Ms Preeyanart said B.Grimm recently signed a memorandum of understanding to develop renewable power projects with China Energy Engineering Corporation, particularly solar-hybrid power systems.