SPNEC kicks off P2.7 B IPO

Published December 1, 2021, 2:44 PM

by James A. Loyola

Solar Philippines Nueva Ecija Corp. (SPNEC), the developer of what is planned to be the largest solar project in Southeast Asia, has kicked off its P2.7 billion initial public offering (IPO) which will run until Tuesday, Dec. 7.

Based on documents filed with the Philippine Stock Exchange, the firm has set the tentative listing date on the Main Board of the Philippine Stock Exchange (PSE) on Dec. 17.

SPNEC is offering 2.7 billion shares at the price of P1.00 per share. The proceeds of the IPO are to be used to complete the first 50 MW of the project and acquire land to expand the project beyond 500 MW, in support of SPNEC’s plan to develop the largest solar project in Southeast Asia.

This will make SPNEC the first company to list under the PSE Supplemental Listing and Disclosure Requirements for Renewable Energy (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).

PSE President Ramon S. Monzon

“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,” said PSE President and CEO Ramon S. Monzon.

Solar Philippines founder Leandro Leviste said “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.”

Solar Philippines Founder Leandro Leviste

“Furthermore, we are thankful for this opportunity to launch the Solar Philippines group’s first public offering, which we see as a favorable signal for future offerings,” Leviste added.

Solar Philippines incorporated SPNEC in 2016, and secured a DOE service contract to develop the Nueva Ecija 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 rotating outages that affected millions of Filipinos earlier this year.

The Nueva Ecija project would be the largest among the first 1 GW of projects of Solar Philippines planned to be operating by 2022.

The other projects include one in Batangas with an operational 63 MW in partnership with Korea Electric Power Corporation; one in Tarlac, being expanded to up to 200 MW in partnership with Prime Infra of the Razon Group; and another two in Batangas and Cavite with a combined capacity of 140 MW planned to be fully operational by 2022.

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 this IPO.