Alternative Energy Corporation Co (AEC) plans to list on the Singapore Exchange Co (SGX) in the first quarter of 2020 to raise capital for business expansion in renewable energy resources.
AEC would be the first Thai clean energy company to list on Singapore's bourse, and third overall after Thai Beverage and Sri Trang Agro-Industry.
For the listing process, AEC has appointed Singapore-based UOB Kay Hian to be its financial adviser and underwriter for its initial public offering (IPO).
Jitraporn Techacharn, chief executive of AEC, said UOB would proceed with the IPO details during the second half of 2019.
AEC plans to float 20-25% of registered capital, with a combined worth of 2 billion baht.
AEC expects to hold roadshows to attract investors, with share subscription and the first day of trading in March 2020.
Mrs Jitraporn said listing on the SGX will create a significant opportunity for AEC in terms of funding and finding global business partners.
AEC is a holding company, managing extensive clean energies including power from community waste, hydro from dams, and solar.
According to the national power development plan 2018-37, the Energy Ministry sets targets for renewable energy accounting for 20% of installed power capacity.
The plan will emphasise power from community waste, she said.
Mrs Jitraporn said Singapore has been one of the world's financial and investment hubs for a long time.
This stock market has allowed the highest number of foreign companies, representing over 40% of listed firms.
SGX's target is to be an alternative way to earn money at the international level, she said.
"SGX is one of the best international markets for holding companies in Asia as it is a gateway connecting investors in search of Asian growth to corporate issuers and an approach to global capital," said Mrs Jitraporn.
At present, AEC runs a 9.9-megawatt (MW) power plant, fired from community solid waste from refuse-derived fuel (RDF) in Praeksa, Samut Prakan province.
A combined 2,500 tonnes of solid waste is fed to the power plant daily. The operation is run through its subsidiary Eastern Energy Plus Co (EEP).
EEP is the first spearhead group of energy firms to develop and operate waste-to-energy power plants, which were provided licences in 2013 and began operation in 2017, according to a report by the Energy Regulatory Commission.
AEC has another three licences for RDF power plants in Ayutthaya, committed to development and operation over the next 3-4 years, with a combined power capacity of 15.9MW.
Mrs Jitraporn said a major budget financed by the IPO scheme is expected to be invested in a hydroelectric power plant in Laos with a capacity of 50MW.
Furthermore, AEC is in talks with solar farm licence holders in order to acquire their rights in coming years.
