The Philippine Stock Exchange (PSE) and Securities and Exchange Commission (SEC) have approved the initial public offering (IPO) of Solar Philippines Nueva Ecija Corporation (SPNEC), the developer of a 500-megawatt (MW) “solar ranch” project.
Solar Philippines would be offering each share at Php1 apiece. Offer period is from December 1-7 and the shares would tentatively be listed in the PSE on December 17.
SPNEC is looking to raise up to Php 2.7 billion, with the first Php 1.3 billion raised primarily to be used to complete the project’s first 50MW. The balance would then be used to acquire land to expand the project beyond 500MW.
Located on an old ranch in Peñaranda, Nueva Ecija, Solar Philippines targets the project to become Southeast Asia’s largest solar venture.
“I am pleased that PSE can support a renewable energy (RE) company with its fund raising requirements. The need for RE is more amplified now as more companies are turning to RE as part of their climate action program,” PSE President and CEO Ramon Monzon said in a statement.
This is the first time that a company has been approved to list under the Supplemental Listing and Disclosure Requirements for RE Companies approved by the PSE in 2011. These rules allow development-stage project companies to list, subject to certain requirements including having a valid and subsisting service contract awarded by the Department of Energy (DOE).
“We thank the PSE and SEC for approving this IPO, which aims to give the public a new option to invest in RE and increase the RE capacity of the Philippines,” said Solar Philippines founder Leandro Leviste.
“We’ve decided to make this our group’s first venture into the public markets because this is the asset that we are proudest to showcase: a site where will rise the largest solar project in Southeast Asia, with potential for expansion given its proximity to Manila, to meet the growing demand for [RE] in the Philippines,” he added.
Solar Philippines incorporated SPNEC in 2016, and secured a DOE service contract to develop the project in 2017. The company plans to start construction of the project before the end of 2021. Once operational, the project is intended to supplement the Luzon Grid’s thin reserves and help prevent the Red Alerts from May 31-June 2.
SPNEC has engaged Abacus Capital and Investment Corporation as issue manager and lead underwriter and Investment Capital Corporation of the Philippines as participating underwriter for the IPO.