The Philippine Stock Exchange said over the weekend it approved the application of renewable energy firm Raslag Corp. to conduct a P700-million initial public offering.
Raslag, a Pampanga-based solar producer, is scheduled to hold the IPO from May 23 to 27, 2022. It will offer up to 350 million primary shares and up to 52.50 million over-allotment option shares at a price of up to P2 apiece. The final offer price will be determined on May 18 after the company’s book building exercise.
“We welcome the IPO of Raslag as this will help grow the lineup of companies in the renewable energy space that are listed on the PSE. Providing RE firms an avenue to raise capital for its projects is one of the ways by which we can help address the threat of climate change as an Exchange,” said PSE president and chief executive Ramon Monzon.
Raslag will use the proceeds from the IPO to pay for the equity portion of Raslag-4’s development and construction and for the pre-development work for Raslag-5 and other pipeline solar projects.
“The exchange’s approval of the conduct of the IPO and listing of the company’s shares is subject to its compliance with all of the post-approval conditions and requirements of the exchange,” the PSE said.
The IPO consists of a primary offering of up to 350 million common shares that will be issued and offered to the public on a primary basis with an offer price of up to P2 apiece.
It also involves an over-allotment option for another 52.5 million common shares to be offered by J Ten Equities Inc. to the public on a secondary basis.
Under its prospectus, Raslag plans to commence the offer period on May 23 and end on May 27. The offer shares are expected to be listed on the PSE main board under the symbol ASLAG on June 6.
The estimated gross proceeds to the company from the sale of the firm shares, assuming an offer price of P2, will be P700 million and the expected net proceeds will be about P647.54 million.
Raslag tapped Sage Solutions Philippines Inc. as financial advisor and China Bank Capital Corp. as the sole issue manager, sole underwriter and sole book-runner of the offering.
The company is in the advanced stages of land acquisition, permitting and land development works for the 35.159-megawatt Raslag-4 project in Barangay Talimundoc, Magalang, Pampanga.
Construction is targeted to commence in the second quarter of 2023 with commercial operations eyed by March 2024.
The company is also planning to build a 60-MW solar plant for its Raslag-5 project in Barangays Acli and Panipuan in Mexico, Pampanga. It also aims to build Raslag-5 within the next five years.
Ongoing projects include the 10.046-MW Raslag-1 and the 13.141-MW Raslag-2.
The third project, the 18.011-MW Raslag-3 in Barangay Bical, Mabalacat and Barangay San Jose, Magalang, is expected to be operational this month.