Meralco PowerGen Corp. (MGen) is continuing with its plans to list its renewable energy subsidiary, MGEN Renewable Energy Inc. (MGreen), on the Philippine Stock Exchange through a backdoor listing via Solar Philippines Nueva Ecija Corp. (SPNEC), as reported by Manila Standard in their article.

Instead of conducting an initial public offering (IPO), MGreen will consolidate its renewable energy assets under SPNEC, an entity which is already listed. This move is expected to streamline MGreen’s entry into the public market while accelerating its renewable energy development plans.

Meralco chairman Manuel Pangilinan confirmed in a recent interview that the company hopes to complete the backdoor listing within the year. He also mentioned that SPNEC’s corporate name will be changed following the transaction.

In March, MGen’s board approved the selection of advisers to assist with MGreen’s planned listing.

MGreen, the renewable energy arm of MGen, currently has a net sellable generating capacity of 397.3 megawatts from pure renewable sources. The company also holds a stake in SPNEC, which maintains a continuous controlling interest in Terra Solar Philippines Inc., the developer behind the MTerra Solar project in Nueva Ecija.

Once completed, MTerra Solar is positioned to be the world’s largest integrated solar photovoltaic and battery energy storage facility. The project is expected to deliver about 3,500 megawatts peak of solar energy and 4,500 MW of alternating current battery capacity.

MGreen is targeting an initial 1,500 MW renewable energy portfolio.

SPNEC was originally developed by Solar Philippines and was the first solar company to go public in the Philippines in 2021. It owns one of the largest solar farms in the country and has pursued partnerships with larger firms to support its capital and expansion needs.

Last week, businessman and SPNEC founder Leandro Leviste disclosed that he had divested most of his personal stake in the company. However, through Solar Philippines Power Project Holdings Inc., Leviste still owns 8.16 billion shares of SPNEC, which he plans to sell through private placements.

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