The Securities and Exchange Commission (SEC) said Thursday it approved the P580 million initial public offering (IPO) of renewable firm NexGen Energy Corp.
The SEC said in a statement it rendered effective the registration statement of NexGen Energy covering 1.49 billion shares, subject to the compliance with remaining requirements.
NexGen Energy will offer to the public 300 million common shares at up to P1.68 apiece.
It said that in case of oversubscription, the company’s majority shareholder, Pure Energy Holdings Corp., will also offer up to 45 million in over-allotment shares for the same price.
The company will use the net proceeds from the fund-raising activity to partially finance its renewable energy projects in Zambales, Cavite and other parts of the country.
The company plans to develop solar and wind projects with a capacity of over 2,350 megawatts over the next 10 years.
The company has three main subsidiaries including SPARC-Solar Powered Agri-rural Communities Corp. which operates three solar farms in Zambales, Bataan and Bulacan; 5Hour Peak Energy Corp. which has a pipeline of over 1,000 MWp of solar projects; and Airstream Renewables Corp. which has a pipeline of up to 1,330 MW of onshore and offshore wind projects.
NexGen also has eight wind energy service contracts (WESC) under Airstream, with four more WESCs in the process of being consolidated into Airstream.
Its shares will be listed and traded on the Small, Medium, and Emerging Board of the Philippine Stock Exchange.
The company tapped China Bank Capital Corp. as the sole issue manager and sole bookrunner for the offering, with Investment & Capital Corporation of the Philippines as joint lead underwriter.
NexGen Energy, established in 2017, operates three solar plants through its subsidiary SPARC-Solar Powered Agri-rural Communities Corp., with an aggregate capacity of 13.859 megawatts-peak.
Its two other main subsidiaries, 5hour Peak Energy Corp. and Airstream Renewables Corp., are engaged in solar and wind projects, respectively.
NexGen will be the third company to list on the stock exchange this year, after OceanGold (Philippines) Inc. and Citicore Renewable Energy Corp., which is set to list its shares on June 7.
