Solar Philippines unit prices IPO to raise USD 53m
The Calatagan Solar Farm. Source: Solar Philippines.
Solar Philippines Nueva Ecija Corporation (SPNEC), a subsidiary of Solar Philippines, today said it has priced its initial public offering (IPO) at PHP 1 per share, the maximum it had indicated, to raise up to PHP 2.7 billion (USD 53.2m/EUR 47.3m).
SPNEC is the developer of a 500-MW solar project. It will use the IPO proceeds to complete the first 50 MW of the project and buy land to expand the project beyond 500 MW.
The offering will take place from December 1 to December 7, while December 17 has been set as a tentative listing date on the Main Board of the Philippine Stock Exchange (PSE).
This is the first listing approved under 2011 rules that allow development-stage project companies in the renewable energy sector to list, contingent on requirements such as having a service contract awarded by the Department of Energy (DoE). Solar Philippines secured a DoE service contract to develop SPNEC’s project in 2017.
“We are thankful for this opportunity to launch the Solar Philippines group’s first public offering, which we see as a favourable signal for future offerings,” said Solar Philippines founder Leandro Leviste.
The 500-MW solar project is aimed at supplementing the Luzon grid’s thin reserves and helping to prevent outages. Its construction is expected to start before the end of the year.