Raslag Corp., a renewable energy developer, announced on Thursday that it has priced its offer at P2 per share, which is at the top end of its range.
The company is offering up to 350 million primary shares and up to 52.5 million over-allotment option shares to be offered by selling shareholder J Ten Equities Inc. At P2 per share, the company will raise as much as P805 million.
Its shares will be traded at the Philippine Stock Exchange (PSE) with the stock symbol ASLAG.
The company will have its offer period next week and its shares will be listed on the PSE on June 6.
Proceeds from the offer will be used to finance the company’s solar projects, namely RASLAG-4, a 35.1-megawatt solar photovoltaic plant in Magalang, Pampanga, and RASLAG-5, with an approximate capacity of 60 MW.
Raslag is a domestic renewable energy developer founded by Peter G. Nepomuceno of the Nepomuceno family in Angeles City, Pampanga, and Conrado D. Pecjo, the business development manager of Angeles Power Inc. It currently focuses on the development of solar power projects, with two operating in Pampanga.
The company tapped China Bank Capital as sole issue manager, underwriter and bookrunner for the offer.
“We reiterate our view that the global pressures to take a hard shift to renewables to ease the effects of climate change are shifting the limelight to alternative sources of energy,” broker Regina Capital and Development Corp. said in its research note.
“This bodes well for ASLAG from all angles because on the one hand, clean energy projects have been generally well- received both from a market and a regulatory standpoint. On the other, the near-term lack of supply will allow for more leverage in terms of pricing.”
The broker said one of the headwinds to look out for is grid parity for solar energy.
“Industry players expect the cost of solar to reach grid parity within the short- to medium-term—therefore, no further rounds of solar FIT [feed-in tariff] programs are expected to be implemented for the foreseeable future. ASLAG nonetheless will likely benefit from cost efficiencies on economies of scale should grid parity indeed be achieved.”