ATN Holdings Inc. said Monday it plans to list the shares of solar subsidiary ATN Philippines Solar Energy Group Inc. through an initial public offering.
“Based on discussions with financial advisers, the executive committee has recommended the IPO against listing by-way of introduction in listing ATN Solar shares in the Philippine Stock Exchange,” the company said in a disclosure to the stock exchange.
ATNH said an IPO would be viable for ATN Solar, given the supplemental listing rules specifically granted to renewable energy companies with the exemption of the three-year positive financial performance.
“Further, the IPO route would have a shorter timeline needed to fund 100 megawatts of solar projects compared to the LBWI requiring a two-step process [LBWI and follow-on offering] for the listing of ATN Solar shares,” it said.
ATNH said the current ATN Solar book value is at P0.90 per share, with expected listing price range of P2 to P2.50 percent share depending on market conditions.
“Public listing of ATN Solar Shares may create additional liquidity and prospective value for shareholders of ATN Holdings and Transpacific Broadband Group Int’l Inc.,” it said.
The approved ATN Solar’s IPO plan and associated cost of the application based on the above-mentioned budget and appointment of an investment banking group and underwriter, are subject to compliance to all rules and regulations of the relevant regulatory agencies.
ATNH said ATN Solar would accelerate its renewable energy adoption given the projected power supply deficit arising from project delays related to the pandemic, the phasing out of coal power plants under UN Climate Change Conference in Glasgow (COP 26), the dwindling supply of Malampaya natural gas and the high oil prices exacerbated by the Russia-Ukraine war.
The company said ATN Solar would undertake this through “alignment with the low-carbon economy transformation blueprint” for timely energy conservation and energy efficiency at a time when all commodities are at an all-time high.
The ATNH board also approved the joint venture agreement with foreign partners for the development and construction of a solar power plant in a 256-hectare property in Montalban, Rizal.
The corporation was also authorized to structure joint venture deals in an eHub logistics warehouse and e-Vehicle project including but not limited to e-bus and e-trucks.
It said ATN Solar intends to team up with a Singapore-based solar project contractor for the installation of modular 1.4-MW solar PV plant in the ATNH quarry site to supply power to the rock crusher plant and ancillaries.
The own-use direct supply to the rock crusher will reduce energy cost of ATN group as the nominal cost of the ground mounted solar farm is estimated at P 2.50 per kWh while the Meralco bill is projected at P14 per kWh under new normal conditions, ATNH said.
It said the initial 1.4-MW capacity of the project would be funded with a debt ratio of 70 percent, with direct equity contributions from ATN HoldingsInc. and Transpacific Broadband Group Int’l. Inc. together with EPC partner.