Listed firm Solar Philippines Nueva Ecija Corp. said it is on track to complete its major deals this year, including its stock rights offering (SRO) within the next few weeks and its asset-for-share swap with parent Solar Philippines by the end of 2022.
“We aim to complete the private placements to increase the public float for the share swap by the end of 2022,” Solar Philippines founder Leandro Leviste said.
SPNEC’s stock rights offer will start at the end of the month and will run until September 5.
The company said it is offering some 1.87 billion in rights shares to eligible shareholders at a price of between P1.50 and P1.76 per share.
Pricing date for the company’s SRO, which allows shareholders to buy additional shares according to its holdings, is on August 18. It is giving 1 rights share for every 1.28 shares owned.
The company is expecting net proceeds of between P2.79 billion to P3.28 billion after deducting fees and expenses for the said offer.
As for the asset-for-share swap with its parent, SPNEC said it would consider various options to increase its public float. The company said it is also in discussions with investors for private placements.
With the completion of these share issuances, it aims to complete the development of 10 gigawatts of solar projects.
“Our job is for these offerings to cover the equity required to complete the development of 10 GW of solar projects, while retaining an average of at least 50 percent economic interest. SPNEC’s model is to create value through project development, investing for a smaller percentage of the cost that catalyzes larger investments, in the same way that we have in our earlier projects,” Leviste said.
Solar Philippines and SPNEC have signed the share swap agreement for the issuance of 24.37 billion shares at an issue price of P2.50 per share, in exchange for the shares of Solar Philippines in a portfolio of projects. The share swap agreement is due to be filed for regulatory approval, with the issuance of shares planned alongside the private placements, the company said.
SPNEC’s board earlier approved the change in corporate name to SP New Energy Corp. in a bid to reflect the expansion of the company to other projects.
The company said the name change is subject to stockholder and regulatory approval.
“We see these corporate actions as being about more than just our company, but the energy mix of our country. We are thankful to our shareholders for supporting SPNEC and the renewable energy transition of the Philippines,” Leviste said.
The company said the name change reflects its expansion from a single project in Nueva Ecija, to a portfolio that includes operational projects and other developments, in support of its goal of completing the development of 10 gigawatts by 2025.
SPNEC said it would reintroduce its business to the market in the coming weeks, including new details related to its portfolio.