Synergy Grid and Development Philippines, the holding firm of the National Grid Corporation of the Philippines (NGCP), has lowered the offer price range for its follow-on-offering (FOO) to Php12-17 per share from the original Php15-25 apiece.
Including oversubscription, Synergy Grid plans to offer 1.15 billion common shares to the public to raise cash and purchase non-voting shares in NGCP.
Should Synergy Grid sells the shares at the new valuation, the company would net only Php17.4 billion, 33% lower than the Php25.8 billion under the original plan.
Slated for October 26, Synergy Grid’s FOO and intends to support the capital expenditures of NGCP. The grid firm plans to spend Php38 billion next year, which forms part of its Php440 billion investment program to expand its transmission network until 2033.
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.