Synergy Grid and Development Philippines aims to raise up to Php28.9 billion (around $573 million) via a follow-on offering (FOO) at the Philippine Stock Exchange (PSE).
Based on its preliminary prospectus, Synergy Grid — already listed since 1972 — is looking to offer 1,053,500,000 common shares, with an overallotment option of 101 million shares, ranging from Php15 to Php25 apiece.
Synergy Grid owns 40.2% of the National Grid Corporation of the Philippines (NGCP), which previously said that it planned to raise up to $2 billion via an initial public offering (IPO).
Synergy Grid became NGCP’s holding firm when it acquired a 67% stake in OneTaipan Holdings of Henry Sy, Jr. and Pacifica21 Holdings of Roberto Coyiuto, Jr. through a share swap deal in May. Trading of Synergy Grid’s shares in the PSE has been suspended since May 31.
OneTaipan holds a 30% stake in NGCP through Monte Oro Grid Resources Corporation. Meanwhile, Pacifica21 holds another 30% through Calaca High Power Corporation. Sy is Synergy Grid’s chairman, while Coyiuto is its vice chairman.
The holding firm’s board recently approved the increase of its authorized capital stock to 5.3 billion shares from 5.05 billion previously. The move has yet to be approved by the Securities and Exchange Commission.
NGCP was ordered by the Energy Regulatory Commission in March to undergo an IPO by November. Under Republic Act 9511 or the grid firm’s franchise law, the grid firm was supposed to be listed in the PSE ten years after commencing operations. NGCP began operating in 2009. The grid operator said in May that it began complying with its IPO requirement.