Solar Power Nueva Ecija Corp. plans to raise up to P3.3 billion from a stock rights offering.
SPNEC said in a disclosure to the stock exchange its board approved on Monday the offering of up to 1.875 billion common shares to shareholders at P1.60 to P1.76 apiece.
The energy firm said the middle of the price range—at P1.68—represents a 16-percent discount to the company’s stock’s volume-weighted average price over the past two months. It also represents a 28-percent discount to SPNEC’s all-time high of P2.34.
“SPNEC is now preparing to file its SRO application, after which the timing would be subject to regulatory approval, but no longer subject to an increase in authorized capital stock,” the company said.
It said the offering is subject to the Philippine Stock Exchange rule that a company can only conduct a new offering after 180 days from its initial public offering. SPENC was listed in the local bourse on Dec. 17, 2021.
Net proceeds from the transaction will be used to acquire land for the development of 4 gigawatts of solar projects.
The projects form part of the 10-GW of developments the company is aiming to reach by 2025 through various joint ventures and acquisitions.
It said to achieve the goal, it has spending application with the Securities and Exchange Commission to increase its authorized capital stock to 50 billion from 10 billion shares.
SPNEC plans to conduct the P3.3-billion rights offering in June, subject to regulatory approval.
SPNEC’s parent Solar Philippines signed last week 20-year power purchase agreements with Indonesia’s state utility PLN for one 25-MW solar farm in East Bali and one 25-MW solar farm in West Bali, which would be the largest ground-mounted solar projects in Indonesia.
SP granted SPNEC the option to subscribe to its share in the JV where it holds 49 percent, subject to regulations including securing approval from PLN.