At a press conference held by the company yesterday, BCPG announced that the proceeds from its upcoming fund-raising via 590 million initial-public-offering (IPO) shares would partly be used as working capital for business expansion, as it aimed to diversify into biomass power business.

The remainder will be used for debt repayment.

Emerging as a solar-power unit of Bangchak Petroleum in 2011, BCPG was spun off and incorporated in July last year with an initial 38MW under operation.

The company has taken over the solar-power business and assets of its parent, while developing further by purchasing solar business in Japan.

Currently, BCPG operates renewable-power business with a contracted capacity of 418MW in total, Bundit said, adding that about 194MW is the aggregate contracted capacity of solar power in Japan, and 130MW in Thailand.

Of the 194MW capacity in Japan, about 20MW has commenced commercial operation, while about 118MW of the 130MW capacity in the Kingdom – at eight locations in five provinces – is also being operated commercially.

Another 12MW comprises Thai projects in the development phase for solar cooperatives, he explained.

“Our vision is to become a pure power player over the next three to five years … We aim to be a developer of renewable-power business,” the company’s president said.

BCPG’s vision is to become an international producer and supplier of renewable power by partnering with local and international firms, he added.

He said the solar power business in Japan was “interesting”, as it gave a rate of return on investment, with earnings before interest, tax, depreciation and amortisation (EBITDA) coming in at about Bt8 million to Bt10 million per megawatt.

Meanwhile, the company’s solar-power plants’ EBITDA in Thailand is Bt15 million to Bt16 million per megawatt, as a result of its projects being the first to be awarded the highest adder tariff of Bt8 per unit.

Varah Sucharitakul, executive director of Finansa Securities – BCPG’s financial adviser and co-lead underwriter for its IPO – said BCPG would offer 590 million IPO shares, or up to 30 per cent of its paid-up capital.

Up 68.85 million, or 11.69 per cent, of the IPO shares will be offered to BCPG’s existing shareholders as a pre-emptive right, and the remainder to the public.

“Those who own BCP [Bangchak Petroleum] shares before August 16 will have the pre-emptive right to subscribe to BCPG IPO shares,” he said.

Varah said that after the fund-raising, BCPG would have room for debt-gearing as large as Bt50 billion-Bt60 billion.