THE Philippine Stock Exchange (PSE) gave its nod to the share rights offering (SRO) of solar power plant company Solar Philippines Nueva Ecija Corp. (SPNEC) to list approximately 1.88 billion shares (1,875,649,995) .
In the approval notice of 28 July 2022, the PSE also approved the proposed SRO calendar, with detachment date of 22 August 2022, registration date of 25 August 2022 and offer period from 30 August 2022 to 5 September 2022.
Last month, the Securities and Exchange Commission also issued an exempt transaction confirmation confirming that the solar power company’s planned OAD is exempt from the registration requirements of the Securities Settlement Code.
SPNEC plans to offer the shares at a price range between P1.50 and P1.76 per share, according to its prospectus dated July 11, 2022.
The company is seeking to raise around P2.8 billion to P3.3 billion from the offer which will then be used for the development of projects (including securing land and withdrawal agreements).
This is also in support of SPNEC’s goal of developing 10 gigawatts of solar projects by 2025, made possible by the authorized share capital increase and asset swapping with its parent company, Solar Philippines.
The company’s developments include the Terra Solar 3.5 GW solar and 4.5 gigawatt-hour battery project, which plans to provide Meralco with 850 megawatts (MW) by half the credit. This was touted as the “largest solar project in the world” and would be more than double the total capacity of solar operating in the Philippines today.
These also include projects that were contracted out in the Department of Energy’s green energy auction, in which Solar Philippines won 70% of the auction’s entire renewable energy capacity (1380 MW out of 1967 MW) and the 91% of all solar capacity (1350 MW out of 1490 MW).
Solar Philippines shares in these projects are among the assets that would be owned by SPNEC after the share swap.