NexGen Energy Corporation, a renewable energy corporation with diverse solar and wind service contracts, has raised P529.2 million from its recently concluded initial public offering.

In a statement, the firm said “Although the offer period (July 1 to July 8) was basically relatively short due to time constraints and the approaching ghost month, the Company’s IPO was oversubscribed with investors taking up 315 million shares at P1.68 per share.”

This means the 300 million primary common shares were fully sold, but only 15 million, or one-third of the 45 million over-allotment option, were bought by investors. The over-allotment shares were secondary shares sold by principal shareholder Pure Energy Holdings.

NexGen said it received commitments from various investors to purchase all primary common shares available for the offering. It sold an additional 15 million shares from its over-allotment option to accommodate the greater-than-expected investor demand.

As it stands, NexGen raised P504 million in gross proceeds from its IPO of 300 million new common shares.

“As we move closer to our listing date in the Philippine Stock Exchange, we are grateful to all who supported the IPO because it demonstrates the confidence in XG’s management team to develop and manage the company’s long-term growth prospects,” said NexGen President and CEO Eric Peter Y. Roxas. 

He added that, “The IPO will be a key milestone in XG’s history, given it would provide much-appreciated financing to fulfill our expansion plans, and our investors will be key to us to succeed in our objectives.”

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.