July 12, 2022

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SPNEC adjusts price range of stock rights offering

SOLAR Philippines Nueva Ecija Corp. (SPNEC) has adjusted the price range of its stock rights offering to P1.50 to P1.75 per share, saying it was doing so “in the interest of the success” of the fundraising.

In its disclosure on Tuesday, the company also highlighted the option to pay in installments, with a downpayment of 25% and the balance of 75% within three months of the offer period.

In its disclosure on March 28, it placed the price range at P1.60 to P1.76 per share.

Last month, it filed the preliminary prospectus for its stock rights offering (SRO) with the Securities and Exchange Commission (SEC) and Philippine Stock Exchange (PSE) for nearly 1.88 billion shares.

With its adjusted price range, it placed the aggregate offer amount at P2.81 billion to about P3.3 billion.

“Please note the final terms of the SRO are subject to approvals from the SEC and PSE, and the process leading up to the conduct of the SRO,” the company said.

“SPNEC wishes to reiterate its commitment to conduct an SRO, as part of its plan to issue to the public at least 5.12 billion shares, resulting in an over 20% public float, in light of its asset-for-share swap,” it added.

The offer period for eligible shareholders will begin on Aug. 30 at 9 a.m. and ends at noon on Sept. 5, 2022.

The company said the net proceeds from the offer are intended for project development including securing land and off-take agreements and for general corporate purposes.

Up to P3.1 billion will be used for land acquisition intended for the expansion and future development projects in the provinces of Nueva Ecija, Bulacan and Quezon, among others.

Up to P180 million of the proceeds will be used for working capital requirements, corporate office overhead expenses, administrative expenses and other costs.

Abacus Capital and Investment Corp. and China Bank Capital Corp. will be the joint issue managers and lead underwriters of the SRO.

On Tuesday, SPNEC shares retreated by P0.04 or 2.34% to P1.67 apiece. — Justine Irish DP. Tabile