SEC okays P690-M IPO of S’pore firm

The Securities and Exchange Commission (SEC) has approved the proposed P690-million initial public offering (IPO) of the Singaporean-owned Salcon Power Corp. (SPC).

Salcon is planning to raise funds to partly finance its $27-million Eight Islands Diesel Project that would supply power to eight major island groups in the country.

Documents from the SEC disclosed that the company, which already manages the rehabilitation of a power plant facility in Colon, Cebu, will be listed in the First Board of the Philippine Stock Exchange with ATR-KIM ENG Capital Partners as issue manager and lead underwriter.

According to Salcon’s registration papers, it planned to offer 313,900,000 existing common shares divided into 156,950,000 new common shares and 156,950,000 existing common shares with a par value of P1 per share to be offered at P1.70 to P2.20 per share.

Salcon was incorporated in March 1994 primarily to engage in the design, construction, rehabilitation, operation, maintenance and management of power generation, supply and distribution plants and related facilities.

The company is owned by Salcon Philippines Inc. a subsidiary which was 60 percent owned by Singapore-based Salcon Limited.

SPI holds 53.72 percent of SPC.

Salcon Ltd. itself directly holds 5.5 percent of the company and 2.7 percent of the total offer, while the other Philippine nationals will end up with 22.67 percent.

Salcon Ltd. earlier launched a reverse take-over of ITE Electric Co. another Singaporean corporation whose shares are listed at the Singaporean Exchange Securities. Upon the completion of the planned reverse takeover, SPI will be 60 percent owned by ITE which in turn will be 75 percent owned by Salcon Ltd.

Salcon said it was planning to use the proceeds of the IPO to partially finance its equity requirement for the Eight Islands Diesel Project sponsored by the NPC which was awarded to the company. – Des Ferriols