ATN Solar eyeing Php1B IPO

Bill urges gov’t to tap into solar energy to power buildings, facilities

ATN Philippines Solar Energy Group Inc. (ATN Solar) is looking to raise Php 1 billion through its initial public offering (IPO) to establish its renewable energy business. 

In a disclosure to the Philippine Stock Exchange by parent firm ATN Holdings on Wednesday, the IPO was recommended by its financial advisers, as it, would “have a shorter timeline needed to fund 100 [megawatts (MW)] of solar projects” 

“[An] IPO would be viable for ATN Solar given the supplemental listing rules specifically granted to Renewable Energy companies with the exemption of the three-year positive financial performance,” the company said.

ATN Solar – a joint venture between ATN Holdings and Transpacific Broadband Group International (TBGI) – is planning to offer the shares between Php2.00 and Php2.50 apiece.

The company’s board approved the establishment of ATN Solar as a response to the projected supply deficit due to “project delays due to the COVID-19 pandemic, decrease in the production of coal power plants, and the dwindling supply of liquefied natural gas in the Malampaya gas field, as well as the continuous rise in crude oil prices globally amid the ongoing conflict between Russia and Ukraine.

ATN Solar also intends to partner with a Singapore-based solar project engineering, procurement, and construction contractor for the installation of a modular 1.4MW solar photovoltaic plant at the company’s quarry site in Montalban, Rizal to supply power to the 500 TPH rock crusher plant and ancillaries under an arms-length own use arrangement. 

The firm adds the 1.4MW initial capacity under the joint venture is enough to supply its rock crusher’s 500-kilowatt power demand, as well an initial four units of e-trucks for hauling of rocks from the quarry to the crusher. The solar farm is projected to expand to 7MW to allow the operation of the crusher plant and of 16 e-trucks, which will replace the company’s current roster of diesel trucks.