Cox Energy America: Raising Capital for a Strategic PlanBy Cinthya Alaniz Salazar | Thu, 07/15/2021 - 11:54
Cox Energy America (COXA) seeks to raise US$32 million in capital in a second PO offering to implement its strategic plan for the period 2020 – 2024 period, which details expansion plans in solar photovoltaic (PV) projects with a total energy production capability of 1,400 MW throughout the region.
For Mexico, specifically, it is to have 600 MW in operation plants and in partnership with Nexus Energia, to commercialize energy focused on large clients. According to José A. Hurtado de Mendoza, CEO of COXA who was recently appointed to lead expansion efforts in the region, the approach in Mexico is based on its recognition of “the great problem of saturation of transmission networks.”
“Additionally, the capital increase will [also] contribute to reinforce the stock liquidity plan for COXA, seeking to increase the stock’s performance, while continuously seek[ing] the highest return for our shareholders” added Enrique Riquelme Vives, chairman of the board of directors.
On Monday, the company offered 18.47 million registered shares at US$1.71 dollars, and although they started strong by the end of the day shares had fallen by roughly seven percent. Today, it is up 3.45 percent, standing at US$1.50. This follows only a year after the company debuted in the Mexican Institutional Stock Market (BMV) as the first solar company in the region.
Hurtado de Mendoza explained that the Spanish company chose to debut in Mexico before its native country because it found itself well positioned, demand growth and a firm commitment to renewables throughout the continent. Although the company chose Mexico for its growth opportunities, they have not ruled out Spain says the CEO.
Given Mexico’s turbulent energy sector and AMLOs animosity towards private industry, COXA plans to stay away from places that have renewable project saturation, mainly the Sonoran Desert and Oaxaca. Instead, the company plans to go where there is the greatest need, naturally, where it is most lucrative. Despite Mexico’s current energy outlook, COXA executives are clam and confident that Mexico will still “become a leading region in investment in the renewable sector.”
Unshaken by the hostile business environment found in Mexico, COXA has doubled down and seeks to continue expansion efforts out of Mexico most likely until a more favorable administration comes into power. Until then, the company will focus its energy towards the fruition of 160MW project in Chile.