The National Grid Corporation of the Philippines (NGCP) is planning an initial public offering (IPO) worth up to $1 billion (around Php48 billion) more than seven years after its franchise law was passed.
A report from business news wires agency Bloomberg mentioned that the NGCP has invited several banks to submit proposals for the IPO, according to anonymous sources.
The sources further said that deliberations are still in its initial stages and that details of the IPO may still change.
Under Section 8 of Republic Act 9511 or NGCP’s congressional franchise, enacted in July 2008, the grid firm is required to make public at least 20% of its outstanding capital stock or within ten years from the beginning of its operations. NGCP officially commenced operations in 2009.
However, the offer won’t be happening anytime soon, as NGCP spokesperson Cynthia Alabanza said that the company was advised that market conditions may not be ideal for now. She added nonetheless that steps are being taken for the IPO to eventually push through.
The NGCP is run by the consortium of Monte Oro Grid Resources Corp., Calaca High Power Corporation, and the State Grid Corporation of China, which won the 25-year concession in 2007 to operate the Philippines’ power transmission network after an open, public, and competitive bidding process. It was the biggest government auction conducted in efforts to reform the local power sector.