RENEWABLE ENERGY company NexGen Energy Corp. has priced its initial public offering (IPO) at P1.68 per share, matching its upper-end forecast.
The company announced the IPO price on June 25, as per a notice on the Philippine Stock Exchange (PSE) website.
It expects its shares to be officially listed on July 16.
NexGen Energy’s IPO comprises a primary offer of 300 million common shares and an overallotment option of up to 45 million secondary common shares.
The offer period is set from July 1 to 8, based on its latest prospectus dated June 24.
If the schedule holds, NexGen Energy is expected to become the third company to go public this year. It will join OceanaGold (Philippines), Inc., which listed on May 13, and Citicore Renewable Energy Corp., led by Saavedra, which listed on June 7.
On Monday, the PSE approved NexGen Energy’s application for the initial listing of up to 1.49 billion common shares, inclusive of shares designated for its IPO, under the small, medium, and emerging board.
The company anticipates generating approximately P478.4 million in net proceeds, which will fund its renewable energy projects in Zambales, Cavite, and other regions.
NexGen Energy appointed Chinabank Capital Corp. as the sole issue manager and sole bookrunner, while Investment & Capital Corp. of the Philippines serves as joint lead underwriter for the offer.
Sought for comment, Globalinks Securities and Stocks, Inc. Trader Mark V. Santarina said in a Viber message: “This IPO is relatively small compared to previous ones, making it challenging to predict if it will trade below the IPO price.”
“Traditional energy sources are notoriously expensive, and NexGen Energy offers a promising solution for the Philippines’ transition to clean energy,” he added.
Mr. Santarina said the current market conditions are “a concern” for IPOs.
“With low trading volume and the overall market trend, it doesn’t seem like an ideal time for an IPO, especially since other candidates have deferred their listings,” he said.
NexGen Energy is a subsidiary of Power Energy, which is a holding company that has assets in hydropower, solar, wind, geothermal, as well as bulk water and distribution facilities.
Established in 2017, the company is eyeing to develop 1,683 megawatts (MW) of ground-mounted and floating solar plants, and onshore and offshore wind projects in the next five years.
It currently manages three solar plants through its subsidiary SPARC — Solar Powered Agri-Rural Communities Corp., with an aggregate capacity of 13.859 MW peak. — Revin Mikhael D. Ochave
