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PSE OKs IPO of Solar Philippines subsidiary
By TED CORDERO,GMA NewsThe Philippine Stock Exchange Inc. (PSE) said Friday it has given the green light for Solar Philippines’ wholly-owned unit, Solar Philippines Nueva Ecija Corp. (SPNEC), to conduct an initial public offering (IPO) to raise funds for its solar farm in the province.
“I am pleased that PSE can support a renewable energy (RE) company with its fund raising requirements. The need for RE is more amplified now as more companies are turning to RE as part of their climate action program,” PSE president and CEO Ramon Monzon said in a statement.
SPNEC will offer up to 2.7 billion shares at a price of up to P1 apiece.
The target offer period is from December 1 to 7, 2021.
The final offer price will be determined on November 23, 2021 after the company completes its bookbuilding process, according to the PSE.
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Proceeds from the offering will be utilized by the company for the construction and development of its 50-megawatt solar project dubbed as Phase 1A, transmission line construction, lease for 2022, and general corporate purposes.
To start commercial operations, SPNEC aims to complete Phase 1A next year.
Even if a renewable energy firm does not have an operating history or track record, it may still do a public offering provided that it complies with the requirements set forth in PSE’s Supplemental Listing and Disclosure Requirements for Petroleum and Renewable Energy Companies, according to the PSE.
Ten percent of SPNEC’s offer shares will be reserved for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website or mobile application, the local bourse said. — VBL, GMA News