The Securities and Exchange Commission (SEC) conditionally approved the planned P708-million direct public offering of Angeles Electric Corporation, allowing the Nepomuceno family to dilute it full ownership to 82.4 percent stake.
In its meeting on Dec. 7, the Commission En Banc resolved to render effective the registration statement of Angeles Electric covering 1.18 billion common shares, subject to the company’s compliance with certain remaining requirements.
Angeles Electric will offer to the public 207.02 million common shares at P3.42 per share. The offer shares are equivalent to 17.6 percent of the company that is currently wholly owned by members of the Nepomuceno family who will end up with an 82.4 percent stake after the offering.
The company expects proceeds to amount to P708.01 million, which will be used to fund a portion of its capital expenditure projects over the next two years.
The offering will run from Dec. 18 to 22, based on the latest timetable submitted to the SEC. The shares may be sold to any person, domestic corporation, association, or partnership.
In the case of domestic corporations and associations, 60 percent of its total voting shares and total outstanding capital stock must be owned and held by Filipinos, in line with the foreign ownership limit for public utility companies at 40 percent of its outstanding capital stock.
Angeles Electric engaged Penta Capital & Investment Corporation as the sole underwriter for the transaction.
The SEC said the AEC offering is being made in compliance with Republic Act No. 9136, or the Electric Power Industry Reform Act, which states that generation companies shall offer and sell to the public a portion not less than 15 percent of their common shares of to the public.
Angeles Electric operates an electric light, heat and power system in Angeles City, Pampanga, servicing around 132,000 customer accounts as of December 2022.
The third largest privately-owned electric company in Luzon, AEC was known as Angeles Light and Power Plant when it formally started operations on July 10, 1923. In 1959, it was incorporated and registered with the SEC as Angeles Electric Corporation.
The company was granted its first franchise to construct, maintain and operate an electric, heat and power system in Angeles City under R.A. 2341 on June 20, 1959.
AEC’s franchise area is Angeles City in the province of Pampanga. It has a total land area of 62.17 square kilometers and is composed of thirty-three (33) barangays with a total population of 462,928 based on the 2020 Census of the Philippine Statistics Authority (PSA).