SEC OKs La Union Electric's P251.4-M public offering

The Securities and Exchange Commission (SEC) has approved the direct public offering (DPO) of La Union Electric Company Inc. (LUECO) aimed at raising up to P251.4 million, which the company intends to use for capital expenditures and expansion.

According to the SEC, its Commission En Banc approved LUECO’s registration statement of 2.35 million shares, with the company set to offer up to 352,950 common shares at P772 apiece. The company will conduct the DPO from January 12 to 16, 2026, and issue the shares no later than February 6.

“The company expects to net around P251.4 million from the offer, which will be used to fund capital expenditures, finance business-related expansion, and upgrade the company’s facilities and equipment,” the SEC said in a release.

LUECO tapped Penta Capital & Investment Corp. as the sole underwriter for the offer, in line with the Electric Power Industry Reform Act (EPIRA), which mandates generation companies to offer and sell at least 15% of their common shares to the public.

The company’s franchise area covers San Fernando City and the municipalities of Bauang and San Juan in La Union and has a distribution system consisting of two substations—the Bauang Substation with a rated capacity of 20 megavolt amperes (MVA) and the Poro Substation with 67.5 MVA.

LUECO is the second issuer to successfully register under the streamlined guidelines on Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS). —VBL, GMA Integrated News