Renewable energy firm NexGen Energy Corporation has set the final price for its P580 million initial public offering (IPO) at the maximum price of P1.68 per share.
Based on Philippine Stock Exchange (PSE) documents, NexGen will offer to the public 300 million common shares. As part of the overallotment option, selling shareholder Pure Energy Holdings Corporation will offer up to 45 million shares also at P1.68 per share.
The company expects to net up to P478.4 million from the offer, which will be used to partially finance its renewable energy projects in Zambales, Cavite, and other parts of the country. It will not receive proceeds from the sale of the option shares to be sold by Pure Energy Holdings.
NexGen shares will be listed and traded on the Small, Medium, and Emerging Board of the PSE.
The company has tapped China Bank Capital Corporation as the sole issue manager and sole bookrunner for the offer, with Investment & Capital Corporation of the Philippines to serve as joint lead underwriter.
Established in 2017, Nexgen currently operates three solar plants through its subsidiary SPARC-Solar Powered Agri-rural Communities Corporation, with an aggregate capacity of 13.859 megawatts-peak.
Its two other main subsidiaries, 5hour Peak Energy Corporation and Airstream Renewables Corporation, are engaged in solar and wind projects, respectively.
Aside from raising fresh capital from the investing public through its IPO, NexGen is also in talks with Environmental, Social, and Governance (ESG) equity funds to help finance its renewable energy expansion program.
"The company is in discussions with several international ESG funds, and we are open to discussions with GOCCs (government-owned and controlled corporations)," said NexGen President Eric Y. Roxas.
NexGen plans to use the fresh funds to partially finance the equity portion for the development of the 5-megawatt (MW) Palauig 2 Solar Plant, an expansion of our existing 5-MW solar plant I Palauig, Zambales, partially finance the equity portions for the development of its 100-MW Silang Maragondon onshore wind power plant, and its 40-MW Asisan onshore wind plant.
The firm estimates construction cost amounting to P210 million for the Palauig 2 solar plant. NEXGEN's service contract of the Palaguig 2 project is awaiting approval from the DOE.
Meanwhile, the Silang Maragondon wind farm in Quezon has an estimated project cost of P5.854 billion, and has already secured its WESC. NEXGEN's Asisan wind farm located in Cavite will cost about P2.341 billion to construct and has likewise secured its WESC.
The company aims to develop 1,683MW of ground mounted solar, floating solar, onshore and offshore wind projects within the next five years.
"NexGen also believes that climate controlled indoor farms would be the next generation farming technology and NEXGEN would like to be at the forefront of supporting the power requirements for these projects," Roxas said.