SMC unit to file IPO this year

THE power unit of diversified conglomerate San Miguel Corp. (SMC) is looking at conducting within the year an initial public offering (IPO), a plan that was shelved in 2014 due to unfavorable market conditions.

“We will set SMC Power’s IPO within the latter part of this year; we will list in the third quarter,” SMC President Ramon S. Ang said.

Ang declined to provide further details. He only said SMC Global Power Holdings Corp. is determined to conduct an IPO at “whatever price or whatever outlook”.

In 2014 SMC wanted to sell a 49-percent stake of SMC Global Power.

Back then, Ang said the company would embark on an equity sale to cornerstone investors aside from the public listing. Of this, 10 percent would be done via an IPO and the remaining 39 percent would be sold to interested investors.

At that time, Ang said his company was in talks with several foreign and local investors. The planned sale was seen to raise $1 billion.

SMC Global Power is now one of the largest power companies in the Philippines with a diversified portfolio utilizing a mix of coal, natural gas and hydroelectric-power plants. Its total capacity is 2,903 megawatts (MW), representing 22 percent of the Luzon grid and 17 percent of the national grid.

These power assets are under the Independent Power Producer Administrator agreements with PSALM, or are owned/under joint-venture agreements and are classified as Independent power producers. These plants are the 2×500-MW Sual coal plant in Pangasinan, the 345-MW San Roque hydroelectric multipurpose power project in Pangasinan and the 1,200-MW Ilijan gas plant in Batangas.

The power firm is also putting up a coal-power facility in Limay, Bataan. The first 150-MW unit of the Limay circulating fluidized bed coal facility is currently undergoing commissioning.  The second unit, another 150 MW, is scheduled for commercial operation within the year. The second and fourth units, each with a capacity of 150 MW, are targeted for commercial operations in 2018.

In Malita, Davao del Sur, the company’s first 150-MW coal plant is already running. A second 150-MW unit will also operate this year. There are plans to build two more units, each with a 150-MW capacity.

Last week Ang said it plans to embark on an ocean-tide energy project with an initial capacity of 1,200 MW that may cost $3.6 billion.

Ang said the necessary documents would soon be filed with the Department of Energy and the Bureau of Investments. The company hired foreign consultants to conduct a technical feasibility study on the project.

SMC also said earlier it was looking to partner with Asian firms to set up a renewable-energy venture to further diversify its power-generation portfolio, which also includes hydropower and natural gas.

 

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