SPNEC seeks to raise USD 54m in IPO

The company has received the green light from the PSE and Securities and Exchange Commission to offer up to 2.7 billion shares at a price of up to USD 0.020 apiece

Solar Philippines Nueva Ecija Corporation (SPNEC), the developer of the largest solar project in Southeast Asia, has received approval to proceed with an initial public offering (IPO) that will fetch up to PHP 2.7 billion (USD 54m).

The company, a unit of solar power producer Solar Philippines, has received the green light from the Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC) to offer up to 2.7 billion shares at a price of up to PHP 1.00 (USD 0.020) apiece. The final offer price will be determined on November 23.

The offering will take place from December 1 to December 7, 2021, while December 17 is set as the tentative listing date. It is the first time a company gets clearance to list under the set of rules known as the Supplemental Listing and Disclosure Requirements for Renewable Energy (RE) Companies.

SPNEC is the developer of a 500-MW solar project designed to supplement the Luzon grid’s thin reserves and help prevent outages. The firm plans to use PHP 1.3 billion (USD 26m) of the IPO proceeds to finalise the first 50 MW of the project, while the rest it intends to spend on land purchases to expand the project beyond 500 MW.

The company has appointed Abacus Capital and Investment Corporation as issue manager and lead underwriter, while Investment Capital Corporation of the Philippines serves as participating underwriter for the IPO.

In addition to Nueva Ecija, Solar Philippines is also working on a 63-MW solar partnership in Batangas with Korea Electric Power Corporation, two solar projects totalling 140 MW in Batangas and Cavite, and an extension of an existing plant in Tarlac to up to 200 MW.