Solar Philippines Nueva Ecija Corp. (SPNEC) plans to raise up to P3.3 billion from its stock rights offering (SRO), proceeds of which will be used to fund its various solar projects in the country.
The company said in its disclosure that it is giving an entitlement ratio from current shareholders of one share for every 1.28 shares held, from its current public float of P2.4 billion worth of shares.
It will have a total of 1.88 billion shares that it will sell, priced between P1.60 and P1.76 per share. The middle of the range at P1.68 is a 16 percent discount of the company’s volume-weighted average price for the past two months, the company said.
SPNEC, which became a public company late last year, said it is targeting to conduct its stock rights offer in June, subject to the Philippine Stock Exchange’s rule that a company can only conduct a new offering 180 days after its initial public offering.
“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 ACS [authorized capital stock] to the extent of its current unissued ACS,” it said.
SPNEC’s shares closed at P2.03 apiece on Tuesday, or double its listing price of P1 per share.
Proceeds of the SRO will be used for “the acquisition of land to be used for 4 GW [gigawatts] of developments, which would form part of the total 10 GW of developments that would be funded from further share issuances enabled by SPNEC’s increase in ACS, as detailed in SPNEC’s comprehensive corporate disclosure,” the company said.
Last month, the board of SPNEC has approved an asset-for-share swap involving the acquisition of of Solar Philippines Power Project Holdings Inc. and 20 other units of the company’s parent firm, Solar Philippines Inc.
Solar Philippines’ assets would be acquired through an asset-for-share swap in exchange for 24.37 billion shares of SPNEC at an issue price of P2.50 per share.
Once completed, SPNEC would own shares in several companies of its parent firm, which already spent years developing over 10 GW of projects.
This includes over 4 GW of developments reserved for its joint venture with Prime Infra, Terra Solar, for which Solar Philippines is preparing land and permits that would form part of its investment in these projects.
Terra Solar is the original proponent for an unsolicited proposal to Meralco for the supply of 850 MW mid-merit for up to 13 hours a day from at least 2.5 GW of solar and 4 GWh of battery storage, which may be over two times the total installed capacity of solar in the Philippines.