July 13, 2022

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RE company Alternergy files for P2.18-B IPO

POWER company Alternergy Holdings Corp. recently filed an application for an initial public offering (IPO) with the Securities and Exchange Commission to raise up to P2.18 billion, which will be used in part for its renewable energy (RE) projects.

Alternergy, founded by former Energy chief Vicente S. Perez, Jr., intends to offer up to 1.28 billion common shares at a maximum price of P1.48 per share, with an overallotment option of up to 192.22 million common shares, the company said in its prospectus dated June 28.

Proceeds will be used for the implementation of the company’s renewable energy projects, payment for shares acquisition, and pre-development expenses of other projects, among others.

The offer period is eyed to run from Nov. 11 to Nov 17, while listing and trading on the main board are set for Nov. 25.

According to Alternergy, it aims to develop up to 1,245-megawatt (MW) of additional wind, offshore wind, solar, and run-of-river hydro projects as part of its expansion plans for the next five years. The company has developed 67 MW of operating assets in wind and solar and 62 MW of hydro and solar projects that are still being built.

It plans to set aside P660 million for two hydropower projects and P530 million for the purchase of shares in Kirahon Solar Energy Corp., a renewable energy company in Misamis Oriental.

At the same time, it will spend P400 million for projects in the works, such as Ibulao Hydro Project, Tanay Wind Project, Alabat Wind Project, and Calavite Offshore Wind Project.

The final offer price will be determined after the company secures regulatory approval, which is temporarily scheduled between Oct. 20 and Nov. 3.

Investment & Capital Corporation of the Philippines is the issue manager and lead underwriter for the maiden offering.

The Philippine Stock Exchange, Inc. (PSE) said in a statement on July 1 that it had eight IPOs in the first six months of the year, which is the same number as for the entire 2021.

Five IPOs were listed on the main board and three on the small, medium and emerging board.

Firms that debuted between January and June were Haus Talk, Inc., Figaro Coffee Group, Inc., Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equity Group, Inc., Raslag Corp., VistaREIT, Inc., and Balai ni Fruitas, Inc.

“Given the lineup of maiden offers in the next half of the year, we may see a 26-year high in terms of the number of IPOs in a year,” PSE President and CEO Ramon S. Monzon said.

The capital raised from the sale of primary and secondary shares in eight IPOs, one stock rights offering, and four private placements during the first half reached P61.92 billion, lower by 49.4% year on year, the PSE noted.

“The fund-raising amount in the same period last year was P122.46 billion, boosted by the largest IPO in PSE history that raised P55.89 billion,” it added.

Mr. Monson said that the record fund raising last year will be difficult to break because of the sizable amount that was generated by the Monde Nissin IPO.

“We have a robust pipeline of public offerings in the second half and if all of these materialize, capital raising may still reach the P200-billion mark,” he added. — Justine Irish DP. Tabile