Sermsang Power Corporation - Investor in Local, Overseas Renewable Energy Power Production/Supply, Connected Businesses - Secures IPO Endorsement/Filings Review by SEC, to Issue up to 276,375,000 Shares, List on MAI

SSP, a company holding shares in local and overseas renewable energy power producers and suppliers and connected businesses, seeks to offer up to 276,375,000 IPO shares, following SEC’s decision to approve its IPO application and review its IPO filings. It also expects to list on MAI by yearend. Its management aim to finance local and overseas expansions. It is running a local solar farm with an installed capacity of 52MW and a contracted capacity of 40MW, and building similar farms in Japan.

Mr Manpong Senanarong, managing director of Kasikorn Securities PCL, as Financial Advisor, revealed that the Office of Securities Exchange Commission (SEC) has endorsed the application submitted by Sermsang Power Corporation (or SSP) to make an initial public offering (IPO) of up to 276,375,000 capital-increase shares (up to 230,375,000 of which would be offered by SSP and up to 46,000,000 of which by Unity I. Capital Limited, SSP’s existing shareholder), which would represent up to 30% of SSP’s post-IPO issued and paid-up ordinary shares, and it has agreed to review SSP’s associated filings.

SSP’s registered capital stands at THB 922,000,000, divided into 922,000,000 ordinary shares with a par value of THB 1 each, and paid in at THB 691,625,000. SSP is a holding company that invests both locally and internationally in renewable energy power production and supply and connected businesses, which are grouped into two segments: i) investment in and development of solar farms; and ii) investment in and development of other renewable energy power plants, e.g. windfarms, biogas plants, biomass plants, waste-to-energy plants, etc.

Subject to approval of the SEC filings, SSP would set the IPO dates and, by this yearend, list on the Market for Alternative Investments (or MAI). The funds raised would be used to expand local and overseas alternative energy power plants and repay bank loans, and as working capital.

Mr Varut Tummavaranukub, SSP’s chief executive, added that SSP (and its subsidiaries) has begun commercial operation of one solar farm project in Thailand since February 2015, namely Sermsang Solar Project (installed capacity: 52MW; contracted capacity: 40MW), located in Khok Samrong District, Lop Buri Province, run by Serm Sang Palang Ngan Co., Ltd. (or SPN), SSP’s fully-owned subsidiary, under a five-year non-firm power purchase agreement (renewable for five years each) between SPN and Electricity Generation Authority of Thailand, with an adder rate of THB 6.5/kWh for 10 years starting the commercial operation date.

SSP currently invests in three solar farm projects in Japan, one of which – Hidaka Project (installed capacity: 21MW; contracted capacity: 17MW) – is in the construction phase. The project, 86.9% owned by SSP and located in Hokkaido Prefecture, will begin commercial operation by SSH by Q1 of 2018. Power will be purchased by Hokkaido Electric Power Company Limited, a private power business firm based in the same prefecture, under a 20-year agreement with a feed-in tariff (or FiT) rate of JPY 40/kWh, fixed for the entire contract term.

Two Japanese projects are in the pre-construction development phase: Yamaka Project (installed capacity: 34.5MW; contracted capacity: 30MW) and ZOUEN Project (installed capacity: 7.8MW; contracted capacity: 6MW). The former, 90% owned by SSP and to be located in Kumamoto Prefecture, is likely to begin commercial operation by GSSE by Q2 of 2020. The latter, 100% owned by SSP and to be located also in Kumamoto Prefecture, is likely to begin commercial operation by ZOUEN by Q4 of 2018. Power produced by each of these two farms will be purchased by Kyushu Electric Power Co., Inc, a private power business firm based in Fukuoka City, under a 20-year agreement with an FiT rate of JPY 36/kWh, fixed for the entire contract term.

SSP, in partnership with War Veterans Organisation of Thailand, has also applied for participation in ground mounted photovoltaic power plant projects for public authorities and agricultural cooperatives (2017), and has been chosen on 28 June, by lot, for a project with an installed capacity of 5.0MW.

“We focus our efforts on investment expansion and personnel development to ensure sustainable growths. We aim to keep investing in and developing power plants until our capacity reaches 200MW by 2020 and become a leading energy firm in Asia with an unwavering commitment to sustainably producing and supplying power and promoting a clean environment in the best interests of the public”, said he.

Ms Thantaporn Kraipisitkul, SSP’s deputy chief executive, noted that the strengths of the company lie in (i) its expertise in renewable energy power and connected businesses, (ii) its ability to deploy advanced technologies and equipment to ensure stable and constant power generation, (iii) its dedicated focus on selection of project sites with proper light intensity and geographical and climatic conditions and without barriers to connection to power distribution networks and (iv) a management team who manage renewable energy business efficiently.