After years of waiting and pushing from the government, the National Grid Corporation of the Philippines (NGCP) finally went public via parent firm Synergy Grid & Development Philippines’ follow-on offering (FOO) at the Philippine Stock Exchange (PSE) on Wednesday.
Synergy Grid was able to raise Php13.85 billion from the FOO after offering 1.15 billion shares priced at Php12.60 apiece.
The FOO’s proceeds will be used to directly subscribe to non-voting preferred shares to be issued by NGCP, from which it will then use to fund its capital expenditure requirements and related costs and expenses.
Five percent of Synergy Grid’s FOO shares were allocated for Local Small Investors (LSI), which was oversubscribed.
“Adding an LSI component to this FOO instantly broadened the investor base of SGP to include more retail investors who would not have otherwise been able to buy shares in SGP because of the overwhelming demand from institutional investors,” said PSE President and CEO Ramon Monzon.
SGP is Synergy Grid’s trading symbol in the PSE.
Meanwhile, Synergy Grid President and CEO Paul Sagayo considers the move a milestone for the company and reflects the firm’s dedication and commitment to fulfill NGCP’s mandate of being the country’s sole power transmission provider.
NGCP is required by Republic Act 9511 or its franchise law to make public at least 20% of its outstanding capital stock up to ten years after commencing operations, unless extended. The grid firm began operating in 2009.
The Energy Regulatory Commission ordered NGCP on May 14 to go public within six months, whether via an initial public offering, FOO, or any other method.