La Union Electric seeks P251M via share sale

La Union Electric Company, Inc. (LUECO) is set to raise around P251.4 million through a direct public offering (DPO), following approval from the Securities and Exchange Commission (SEC). 

The SEC En Banc has approved LUECO’s registration statement covering 2.35 million shares, subject to compliance with remaining requirements. LUECO will offer up to 352,950 common shares at P772 apiece to the public.

The regulator said Thursday that LUECO was already the second company to register under the SEC’s streamlined POWERS guidelines for power generation and retail operators.

Proceeds from the sale will fund capital expenditures, support business expansion, and upgrade facilities and equipment.

The offering is scheduled from 12 to 16 January, with shares expected to be issued by 6 February.

The DPO is conducted in compliance with Section 43t of Republic Act No. 9136, or the Electric Power Industry Reform Act, which requires generation companies to offer at least 15 percent of their common shares to the public.

Penta Capital & Investment Corporation serves as the sole underwriter for the offering.

LUECO operates in the City of San Fernando and the municipalities of Bauang and San Juan in La Union. Its distribution system includes the Bauang Substation and Poro Substation, with rated capacities of 20 megavolt-amperes (MVA) and 67.5 MVA, respectively, as of the end of 2024.