Another energy company is tapping the equity market to raise much-needed funds that will significantly support its business operations and expansion.

The Securities and Exchange Commission or SEC on Monday disclosed that it approved the direct public offering of Angeles Electric Corp. following its 7 December meeting. 

The commission en banc green-lighted the registration statement of Angeles Electric covering 1.178 billion common shares — subject to the company's compliance with certain remaining requirements. 

By offering the public 207.02 million common shares at P3.42 per share, Angeles Electric expects to raise P708.01 million, which will be used to fund a portion of its capital expenditure projects over the next two years. 

Holiday float

Based on the most recent timetable submitted to the SEC, the offering will run from 18 December to 22 December. The shares may be sold to any person, domestic corporation, association, or partnership.

For domestic corporations and associations, 60 percent of their total voting shares and total outstanding capital stock must be owned and held by Filipinos. It is aligned with the foreign ownership limit for public utility companies, which is set at 40 percent of their outstanding capital stock.

Angeles Electric engaged Penta Capital & Investment Corporation as the sole underwriter for the transaction.

The offering follows the Republic Act 9136, or the Electric Power Industry Reform Act, which states that generation companies shall offer and sell to the public a portion not less than 15 percent their common shares to the public.

Angeles Electric provides electric light, heat and power to customers in Angeles City, Pampanga. As of December 2022, the company has approximately 132,000 customer accounts.