ACEN Corp., the power generation arm of the Ayala Group, said on Wednesday it expects to raise up to P30 billion in fresh capital from a stock rights offering (SRO) in September to finance its renewable energy expansion.
The company said its board had approved the offer and issuance of primary common shares via an SRO to eligible stockholders of record and the subsequent listing of those shares.
“We just approved the stock rights offering… As I explained, the increase in authorized capital stock was to allow fresh equity raising either in the form of SRO or private placement right, or a follow-on offering. But what the board has decided… is a stock rights offering of up to 30 billion pesos with a floor price of 2.30 pesos per share,” ACEN president and chief executive Eric Francia told reporters.
ACEN said in a disclosure to the stock exchange the common shares to be issued would come from its current unissued common shares and the increase in its authorized capital stock, which was approved by the board and stockholders on March 10 and April 23, respectively.
The final terms and conditions of the SRO, including the final issue size, entitlement ratio and offer price would be determined before the launch and disclosed at the appropriate time in the final prospectus, the company said.
ACEN said the increase in its authorized capital stock, the SRO and the listing of the common shares to be issued with the Philippine Stock Exchange are subject to relevant regulatory approvals. The company said it expects to launch the SRO after obtaining all necessary approvals and subject to suitable market conditions.
“AC Energy and Infrastructure Corporation and Arran Investment Pte Ltd, ACEN’s principal shareholders, have both indicated their support for the SRO and plan to subscribe to their pro rata shares subject to the finalization of the terms of the SRO,” it said.
Francia said ACEN’s balance sheet remained strong, with cash reserves of over P25 billion and a net debt to equity ratio of 0.69.
“With this said, the company shall continue to strengthen its balance sheet, including the augmentation of equity capital, to enable our continued expansion while maintaining a healthy financial position,” he said.