Synergy Grid & Development Philippines, which owns the National Grid Corporation of the Philippines (NGCP), is set to have its follow-on offering (FOO) from October 26-November 2, just a few weeks before the grid firm’s listing deadline with the Energy Regulatory Commission (ERC).
The development follows the Securities and Exchange Commission’s approval of the FOO on Friday. The shares from the offer are expected to be listed in the Philippine Stock Exchange (PSE) on November 10.
Trading of Synergy Grid’s shares in the PSE has been suspended since May 31.
Synergy Grid will offer to the public up to 1.05 billion common shares priced between Php15 and P25 each, with an over-allotment option of up to 101 million common shares that will be offered by selling shareholders Henry Sy, Jr. and Robert Coyiuto, Jr.
The company expects to net Php25.69 billion from the offer. It will not receive proceeds from the sale of shares by the selling shareholders. Proceeds from the offer will be used for subscription to the non-voting preferred shares to be issued by NGCP, which it will use to finance its capital expenditure requirements and related costs and expenses.
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 ERC handed down NGCP an order on May 14 giving it six months to go public, whether via an initial public offering, FOO, or any other method.