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First RE float goes at P1 each

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Solar Philippines Nueva Ecija Corporation (SPNEC) has priced its Initial Public Offering (IPO) at P1.00 per share — sizing the offering at up to the maximum of its indicative range at P2.7 billion.

This is the first time that a company has been approved to list under the Supplemental Listing and Disclosure Requirements for Renewable Energy (RE) Companies approved by the Philippine Stocks Exchange (PSE) in 2011.

SPNEC said proceeds of the float will be used to complete the first 50-megawatts (MW) of the project and acquire land to expand the project beyond 500 MW — in support of its plan to develop the largest solar project in Southeast Asia.

The offer period is planned for 1 to 7 December, with a tentative listing date on the Main Board of the PSE on 17 December.

“We are thankful for this opportunity to launch the Solar Philippines group’s first public offering, which we see as a favorable signal for future offerings,” Solar Philippines founder Leandro Leviste said Wednesday.

Climate imperative
“I am pleased that PSE can support a renewable energy company with its fundraising requirements. The need for RE is more amplified now as more companies are turning to RE as part of their climate action program,” PSE president and CEO Ramon Monzon said.

These rules allow development-stage project companies to list, subject to certain requirements including having a valid and subsisting service contract awarded by the Department of Energy (DoE).

Solar Philippines incorporated SPNEC in 2016 and secured a DoE service contract to develop the project in 2017.

The company plans to start the construction of the project before the end of 2021. Once operational, the project is intended to supplement the Luzon grid’s thin reserves and help prevent the rotating outages that affected millions of Filipinos earlier this year.

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