Synergy Grid & Development Philippines Inc., which is a holding company affiliated with transmission firm National Grid Corporation of the Philippines (NGCP) is eyeing to raise more than P28.82 billion from its follow-on offering and sale of 1,053,500,000 common shares to the investing public.

In a preliminary prospectus filed with the Securities and Exchange Commission (SEC), Synergy stipulated it also set an overallotment option of up to 101,000,000 common shares on the planned issue.

Synergy Grid exercises control over the 60 percent shareholdings of transmission firm NGCP via an earlier share swap done with the beneficial equity holders in the company – the OneTaipan Holdings Inc. of Henry Sy Jr. which holds the 30 percent equity of Monte Oro Grid Resources Corp. in the transmission company; and then the Pacifica21 Holdings of Robert Coyiuto which holds the 30-percent shareholdings of Calaca High Power Corp in NGCP.

The shares offer had been initially priced at P15 to P25 per share – and if the higher price of P25 per share will eventually be the final price, the expected proceeds will hover at P26.337 billion or US$542.5 million, according to Synergy.

“Synergy intends to use the net proceeds from the firm shares to subscribe to non-voting preferred shares to be issued by NGCP – subject to applicable rules and regulations,” the company said.”

And if the overallotment option will be fully subscribed at a final offer price of P25 per share, there will be additional proceeds of P2.525 billion (US$52 million), prior to the deduction of fees and expenses.

The joint financial advisors tapped for the issue had been Standard Chartered Bank, Philippine Commercial Capital Inc. and BDO Capital; while joint global coordinators and joint bookrunners have been BofA Securities (previously Bank of America Merrill Lynch), J.P. Morgan and UBS.

The designated sole domestic coordinator is BDO Capital; while joint domestic underwriters and joint bookrunners are BDO Capital, BPI Capital and PNB Capital.

Synergy added that shares to be issued will be from its “unissued common shares – of which 900,134,000 common shares are part of Synergy’s unissued capital stock, while the remaining 153,366,000 offer shares will be issued from the capital increase that it earlier applied for with the SEC.

To note, the board of directors of Synergy had approved this year “to increase its authorized capital stock to P5,050,000,000,” and that shall be an increase of P250,000,000 from P5,300,000,000 -- and this is pending for approval by the SEC.

Synergy emphasized that its total issued and outstanding capital stock had been placed at 4,149,866,000 common shares.

“Upon approval by the Philippine SEC of the capital increase, the total issued and outstanding capital stock of the company shall be 5,265,866,000,” the company specified.