First Gen delays IPO till after May 2004 elections

First Generation Holdings Corp. (First Gen), one of the power generation units of the Lopez group, has pushed back anew its planned initial public offering (IPO) until after the May 2004 elections.

First Gen vice chairman and chief executive officer Peter Garrucho Jr., however, said the company is still actively holding talks with prospective financial advisors.

Garrucho earlier said they were planning to conduct the IPO in the first quarter of next year.

He said the offering will prepare the company in its bid to participate in the privatization of the generation assets of the National Power Corp. (Napocor). Up to now though, the government has yet to start the process.

"We intend to hold the IPO maybe after elections. But we are talking with a number of advisors already," Garrucho said.

Based on initial plans, First Gen will offer 25 to 30 percent of its equity to at least three foreign financial groups.

The remaining 10 percent of the 40-percent stake up for grabs would be sold through the IPO. The First Gen stake had been earlier valued at $500 million.

First Gen is the holding company of First Gas Holding Inc., which owns the 1,000-megawatt (MW) Sta. Rita plant and the 500-MW San Lorenzo natural gas-fired power plants in Batangas. These gas-run power facilities supply electricity to Manila Electric Co. (Meralco) which is also controlled by the Lopezes.

First Gas, on the other hand, is a joint venture with British Gas. It operates the 225-MW Bauang diesel-fired plant in La Union and the 72-MW diesel-fired Panay plant through its wholly-owned subsidiary First Private Power Corp., which was recently sold to the Metrobank-Mirant Group.