The Philippine Stock Exchange (PSE) approved the P580 million initial public offering (IPO) of renewable energy producer NexGen Energy Corp. led by the Tiu family.
The PSE said in a memorandum posted on its website NextGen planned to sell up to 300 million shares to the public at an offer price of 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 at the same price.
Post-IPO, NextGen will have a market capitalization of P2.5 billion and a public float of 23.15 percent, assuming the oversubscription option is exercised. The offer period will run from July 1, 2024 to July 8, 2024.
The shares will be listed on the Small, Medium and Emerging Board of the PSE on July 16, 2024 under the trading symbol “XG”.
NexGen plans to 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.
Established in 2017, the company plans to develop solar and wind projects with a capacity of over 2,350 megawatts over the next 10 years.
It 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 MW 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.
China Bank Capital Corp. is the sole issue manager and sole bookrunner for the offer, with Investment & Capital Corporation of the Philippines as the joint lead underwriter.
Nexgen will be the third company to list on the stock exchange this year after OceanGold (Philippines) Inc. and Citicore Renewable Energy Corp.
The Tiu family has several companies listed on the local bourse, including Discovery World Corp., TKC Steel and Repower Energy Development Corp.
