The Securities and Exchange Commission (SEC) has approved the maiden public offering of Central Azucarera de San Antonio, Inc. (CASA) worth up to P558.5 million.

In its meeting on August 31, the Commission En Banc resolved to render effective the registration statement of CASA covering 1.85 million common shares, subject to its compliance with certain remaining requirements.

CASA will offer 277,500 common shares, consisting of 214,551 new common shares by way of a primary offer and 62,949 secondary shares offered by a selling shareholder, priced at up to P2,012.52 per share. The shares will be traded over the counter.

The company is conducting the offering pursuant to Republic Act No. 9136, or the Electric Power Industry Reform Act of 2001, which mandates generation companies that are not publicly listed to offer and sell to the public not less than 15 percent of their common shares within five years from the effectivity of Energy Regulatory Commission Resolution No. 4-2019.

The Chan-owned company primarily operates a sugar milling business, but also engages in power generation through a biomass co-generation plant with an initial installed generation capacity of 15 megawatts.

Net proceeds from the primary offer is estimated at P422.04 million which CASA will use for the upgrading of its cogeneration facility, motor pool, and sugar factory, as well as for land acquisitions and farm mechanization.

CASA will not receive proceeds from the sale of secondary shares, which is expected to yield P115.43 million in net proceeds.

The company engaged SB Capital Investment Corporation as the issue manager and underwriter for the offer.