Solar Philippines Nueva Ecija Corporation (SPNEC), the developer of what is planned to be the largest solar project in Southeast Asia, has successfully made its trading debut on the Main Board of the Philippine Stock Exchange (PSE).
The firm’s shares closed its first trading day at P1.01 per share, up one percent from its offering price of P1.00 despite earlier weakness of the market.
SPNEC’s IPO was oversubscribed, receiving P5.3 billion in orders for the P2.7 billion offering, with strong demand from investors who want exposure to the first pure-play solar company to list on the PSE.
This oversubscription comes as the company’s IPO was sized at the maximum of its indicative range of up to 2.70 billion shares at up to P1.00 per share, giving SPNEC a market capitalization of P8.12 billion.
PSE President Ramon Monzon congratulated SPNEC as the first company to list under PSE’s Supplemental Listing and Disclosure Rules for Renewable Energy Companies approved by the PSE in 2011, which provides exemption from the PSE’s track record and operating history requirements.
“I am optimistic that this solar farm project will be equally successful and profitable as the two other solar farms of SPNEC’s parent company in Batangas and Tarlac,” Monzon said.
He added that, “Aside from being the first to list under the Supplemental Rules for Renewable Energy, this IPO holds the record for having the youngest chairman of a listed company, Mr. Leandro Leviste at 28 years old. This should serve notice to other young entrepreneurs that they too can access capital through the stock market.”
“On behalf of the Philippine Exchange Company, I’d like to congratulate Solar Philippines Nueva Ecija Corporation on its IPO and for being the first mover in the renewable energy space to list in the Exchange,” Monzon noted.
Securities and Exchange Commission (SEC) Chairman Emilio B. Aquino highlighted how SPNEC’s IPO marks a step forward for renewable energy in the Philippines.
“SPNEC’s listing today marks an ambitious step forward for the progress of both the renewable energy and capital markets in the Philippines. Its public offering accomplishes two major milestones: First, with the proceeds of the IPO, SPNEC aims to develop a 500 megawatt solar power plant. This power plant will not only be larger than any solar power plant operating or committed in the Philippines today but it will be the largest solar project in Southeast Asia. Second, this listing marks the first time that a renewable energy company will list in the PSE under the supplemental and disclosure requirements for renewable energy companies,” he said.
Aquino added that, “We are optimistic that SPNEC’s example will pave the way for more renewable energy companies to list under the supplemental rules for the benefit of the public who will enjoy increased investing opportunities and cleaner power to fuel their daily lives.”
Leviste said that, “With this IPO, we hope it can be said, that capital should not be the constraint for our country’s transition to renewable energy, as long as companies deliver.” “I would like to thank our public shareholders, who have placed their faith on our ability to turn a power point into a power plant. We strive to live up to these expectations, and create value from the use of proceeds, so that hopefully we will have much to show the next time we come to market,” he noted.