IC Power Gears Up for IPO

By Chris Lange Updated Jan 12, 4:38PM EST · Published Dec 19, 12:50PM EST

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IC Power Gears Up for IPO — © Thinkstock

[cnxvideo id=”655426″ placement=”ros”]IC Power PTE has filed its fourth-amended F-1 form with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). No terms were given in the filing, but the offering is valued up to $100 million. This number is generally considered just a placeholder. The company plans to list on the New York Stock Exchange under the symbol ICP.

The underwriters for this offering are Merrill Lynch, Credit Suisse, Goldman Sachs, UHS Investment Bank, HSBC, Scottabank and Credicorp Capital.

IC Power is a leading owner, developer and operator of power facilities located in key power generation markets in Latin America, the Caribbean and Israel, utilizing a range of fuels, including natural gas, hydroelectric, heavy fuel oil, diesel and wind.

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Currently, the principal focus is on Latin American markets, which typically have higher rates of growth of gross domestic product (GDP) and lower overall and per capita energy consumption, as compared with more developed markets. IC Power believes that economic growth in Latin American markets will drive increases in overall and per capita energy consumption and therefore require significant additional investments in power generation assets in those markets.

The company detailed in the filing:

As of September 30, 2016, our installed capacity and proportionate capacity were 3,894 MW and 3,114 MW, respectively, including Kanan’s 92 MW thermal generation project in Panama, which reached its commercial operation date, or COD, in April 2016, Samay I’s 616 MW cold-reserve thermoelectric project in Peru, which reached COD in May 2016, and Cerro del Águila S.A.’s, or CDA’s, 510 MW hydroelectric plant located in Peru, which plant’s three generating units reached COD in August 2016.

IC Power intends to use the net proceeds that it receives in this offering, along with readily available cash:

To develop greenfield projects
To acquire companies or assets in the electricity sector (e.g., generation, transmission or distribution companies or assets)
To prepay in full all obligations under its note payable to Kenon (which will be in an aggregate principal amount of up to $220 million), which note will be issued to Kenon as part of the consideration for Kenon’s contribution of ICP in connection with the reorganization
For general corporate purposes

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By some key metrics, 2016 has been a dismal year for IPOs. Still, the stock market has improved and we have featured the 18 biggest companies that may IPO in 2017.

About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.