TGE aiming to raise B1.2bn through IPO
Thachang Green Energy Plc (TGE), a local biomass power plant developer and operator, is preparing to raise funds worth 1.2 billion baht through an initial public offering (IPO), in a move to support its three waste-to-energy projects.
The company plans to issue 600 million shares, or 27% of registered capital. The subscription price is 2 baht per share, with the subscription period scheduled between Aug 9-11.
Pongnarin Wansuwankul, executive chairman of TGE, said money from the IPO will be spent to support the company’s ongoing development of three waste-to-energy power plants and debt payment.
TGE was recently awarded licences to develop and operate three community waste-fired power plants in the provinces of Sa Kaeo, Ratchaburi and Chumphon.
The company is preparing to build the three power plants, with total installed electricity generation capacity of 22 megawatts. They are expected to start commercial operations within 2024.
TGE will sell 16MW of electricity to Provincial Electricity Authority, the state electricity distribution arm.
Sakda Siriphatsophon, chief executive of TGE, said his company intends to participate in a new auction of four waste-to-energy projects, scheduled to be organised within the second half of this year by the Energy Regulatory Commission.
The four projects are located in Prachin Buri, Chai Nat, Ubon Ratchathani and Samut Sakhon. They have combined installed capacity of 37.7MW.
“We are confident we’ll win the bidding, thanks to various factors including our cost effectiveness, good logistics management, maintenance expense control as well as flexibility in maintenance programmes,” said Mr Sakda.
“These factors increase our com-petitiveness.”
TGE looks forward to expanding its business, with a plan to increase total capacity to more than 200MW by 2032.
At present, TGE is operating three biomass power plants in the southern province of Surat Thani, which is known as the hub of palm plantations in the country.
The three facilities have combined installed capacity of 29.7MW. Up to 20.3MW of electricity is sold to the Provincial Electricity Authority under long-term power purchase contracts.
TGE recorded a gradual increase in revenue between 2019 and 2021.
In 2019, the company earned 335.1 million baht. Revenue increased to 650.9 million baht in 2020 and 779.7 million baht in 2021.
There has also been an increasing trend when it comes to net profits.
TGE recorded a net profit of 94.3 million baht in 2019 and saw it increase to 166.9 and 202.1 million baht in 2020 and 2021, respectively.