Global Power Synergy Public Company Limited (GPSC), a leading producer and distributor of clean energy in the forms of electricity, steam, and public utility, and shareholder of companies who produce and distribute electricity, steam, public utility, and relates businesses both in Thailand and overseas, is ready to offer 374.57 million IPO shares to raise funds for business expansion both locally and internationally, with KTZMICO, Finansa, and Tisco as its financial consultants and lead underwriters.
Mr. Noppadol Pinsupa, President of Global Power Synergy Public Company Limited (GPSC), said that the company has got an approval from The Office of the Securities and Exchange Commission (SEC) to offer capital increase ordinary shares to the general public for the first time, offering 374.57 million IPO shares with par value of 10 baht. KTZMICO, Finansa, and Tisco will serve as its financial consultants. The company expects to raise funds and to register these shares for trade on the Stock Exchange of Thailand (SET) within the second quarter of this year. The funds will be used in its business expansion both locally internationally, and as working capital.
GPSC’s core business is to generate and supply electricity, steam, and public utility. As of December 31, 2014, the total generating capacity is 1,315 MW of electricity, 1,345 tons per hour of steam, 12,000 refrigeration tons of water, and 2,080 cubic meters per hour of processed water from its combined cycle power plant in Sriracha district, Chonburi province, cogeneration power plant and three steam generating units under the name Central Utility Plant (CUP) in Rayong province. Once all power-generation plants that GPSC has invested in start their commercial operations, GPSC will have total electricity generation capacity, based on equity MW, of 1,851 MW, as well as 1,512 tons per hour of steam, 12,000 refrigeration tons of chilled water, and 2,080 cubic meters per hour of industrial water. Its core customers are (1) Public organizations such as EGAT, PEA, and MEA, a group which generate steady and predictable income thanks to clearly stipulated amount and price of purchase, and (2) Industrial clients.
Mr. Noppadol added that the company has recently signed an MOU to make use of a piece of land within PTT Wanarom Eco Zone Industries to build its 4th CUP in Rayong province. It is building a cogeneration power plant using natural gas to produce 40 MW of electricity and 70 tons per hour of steam. The company plans to sell the electricity and steam to the growing factories within PTT Wanarom Eco Zone Industries and surrounding industrial estates. The investment for this project is about 3,670 million baht. The company also has plans to connect this power plant with other CUPs to strengthen the capacity of its production and distribution system. It is expected that the construction of the CUP 4 Phase 1 will be completed and the power plant will be ready for distribution in the 2017. The power plant has potential for further expansion to cater to the growing needs from the industry in the future.
Mr. Noppadol continued that the company aims to become one of the global electricity leaders through expansion of its investment and projects both locally and internationally. Its short-term goal is to increase its power production capacity, adding 600 – 1,000 MW within 2019. The focus is on procuring other power plants and developing cogeneration power plants, combined cycle power plants, and renewable energy power plants. It has adopted Circular Economy approach which focuses on reusing and recycling, such as making use of the heat from the steam in the power plant. This approach will help the company achieve its target. The company has established four key
policies for its growth. 1) Growth along with PTT Group, in order to build consistency in power and public utility for the production process of the companies under the PTT Group. 2) Quick win, meaning to grow faster through short-term projects or acquisitions, in order for the company to quickly increase its electricity generation capacity. The company has plans to develop power plants such as solar energy, wind power, biogas, and biomass, which take a short time to construct. Additionally, the company has merger and acquisition plants for power plants in Thailand and overseas, both ones that are in business and ones under construction. 3) Big win, or grow by investing in large power plants in Thailand and neighboring countries, so that the company can increase its electricity production capacity in the long run. The company has plans to develop and invest in power plants in Thailand and neighboring countries such as Myanmar, Laos, Cambodia, and Indonesia. Recently, GPSC has invested in Ichinoseki Solar Power 1 GK, holding 99% of the shares, while the remaining 1% is held by Girana Anuman-Rajadhon, to do solar farm business in Iwate’s province in Japan, with a power purchase agreement (PPA) of 25 years. The solar farm can produce 239 MW of electricity, and is expected to generate 1.1 billion yen of revenue per year. The Japanese government actively supports the use of alternative energy in producing electricity, after the halt of nuclear power plants following the tsunami in 2011, which triggered a leak at Fukushima Power Plant. Japan imports a lot of energy and offers attractive financial capital, with loan interest being around 2-3%. GPSC saw the opportunity for growth in this investment. 4) Adjacent and Support Opportunities, or to invest in relevant businesses, in addition to electricity business. GPSC has plans to expand its business in other relevant fields such as energy storage system and battery. GPSC has joined the U.S. Corporation, 24M Technology Inc., whose core business is to research and develop Lithium-Ion battery. GPSC is also looking at Energy Service Company (ESCO) who offers energy conservation and alternative energy services by investing in the development of power distribution network, focusing on overseas markets where the power distribution network has insufficient coverage. The network development will help increase the need for electricity, and increase the investment opportunities in the local power plants. The company always tries to find new business opportunities to expand its business and generate growth.