Synergy Grid & Development Phils. Inc., which indirectly owns a majority stake in the National Grid Corporation of the Philippine, reduced the offering price for its planned share sale to a range of P12 to P17 apiece.
Synergy Grid at this price level will raise between P12.6 billion and P17.85 billion from the sale of 1.05 billion common shares, with an oversubscription option for another 101 million shares.
The company previously set the price range at P15 to P25 each.
The Philippine Stock Exchange said on Friday it approved the share sale of Synergy Grid. The offering period is set from Oct. 26 to Nov. 2, 2021. The shares will be listed on the main board of the PSE on Nov. 10, 2021.
The company will use the net proceeds to subscribe to non-voting preferred shares to be issued by NGCP, subject to applicable laws and regulations.
The sale is expected to increase Synergy Grid’s public float to 22.12 percent, making it compliant with the minimum public ownership requirement for listed companies.
Trading of Synergy Grid shares was suspended on May 30, 2021 after its public float fell to 0.25 percent, following the completion of the share swap deal in exchange for shares in OneTaipan Holdings Inc. and Pacifica21 Holdings Inc.
OneTaipan, controlled by Henry Sy Jr., owns the controlling shares in Monte Oro Grid Resources Corp., which holds 30 percent plus one share in NGCP.
Pacifica21, controlled by Roberto Coyuito Jr., owns controlling shares in Calaca High Power Corp., which owns 30 percent minus one share in NGCP.
NGCP is the sole and exclusive operator of the Philippines’ nationwide transmission network linking power generators and distribution utilities to deliver electricity to end-users across Luzon, Visayas and Mindanao.
Synergy Grid tapped BofA Securities and UBS AG Singapore Branch as joint global coordinators and joint bookrunners for the transaction.
BDO Capital and Investments Corp. will serve as sole domestic coordinator, joint domestic lead underwriter and joint bookrunner alongside BPI Capital Corp. and PNB Capital and Investment Corp.
Prior to the trading suspension, the share of Synergy Grid were trading at P395.80.
The Energy Regulatory Commission earlier allowed NGCP to conduct an IPO or substitute it with the listing of any company in the stock market which owns at least 30 percent of outstanding capital stock.
“After careful evaluation of the foregoing allegations of NGCP vis-à-vis the pertinent provisions of R.A. No. 9511, the commission hereby clarifies that NGCP can undertake public listing or in substitution, submit proof of the listing of any company in the PSE which owns or controls at least 30 percent of its outstanding capital stock... ,” the ERC said in an order promulgated on Aug. 20.
The ERC issued the clarification after NGCP on July 2 sought a clarification of an order. NGCP asked if it could be allowed to list “any company which directly or indirectly owns or controls at least 30 percent of the outstanding shares of stock of NGCP, which can be achieved through the share swap transaction and follow-on offering of 20 percent of Synergy Grid & Development Phils. Inc.’s shares, as an alternative mode of compliance under Section 8 of NGCP’s legislative franchise.”