MANILA, Philippines - First Gen Corp., the power generation arm of the Lopez Group, has raised P7.5 billion from an overnight private placement to fund investments in the country’s energy sector.
In a disclosure to the Philippine Stock Exchange, First Gen said it sold a total of 297.03 million for a price of P25.25 each.
First Gen said the placement was conducted through an accelerated bookbuilding process and its issue price represented a 2.9 percent discount to its Tuesday stock closing price of P26 per share.
First Philippine Holdings Corp. (FPH), First Gen’s parent firm, said in a separate disclosure it subscribed to 196.75 million common shares for a total amount of P4.96 billion.
First Gen will issue to FPH 179.127 million common shares from its treasury stock, as well as 17.623 million common shares from its unissued capital stock.
The listed firm said the shares to be issued from the unissued capital stock represent less than 10 percent of the company’s issued and outstanding capital stock, and would be applied for listing with the Philippine Stock Exchange.
Aside from the shares purchased by its parent company, the transaction also covered the sale of 100.278 million common shares from the company’s treasury stock to other investors in reliance on Regulation S under the US Securities Act of 1933.
Following the subscription, FPH will maintain its 66.2 percent stake in First Gen’s issued and outstanding common stock.
FPH said the transaction should result in additional earnings to the company depending on First Gen’s performance.
Proceeds from the transaction will be used by First Gen for investments in power projects and general corporate purposes, and is also seen helping bring the power firm closer to achieving its growth targets.
“The funds raised in this private placement not only signifies FPH’s continued support in First Gen, but will also bring the company closer to achieving its growth targets,” said Francis Giles B. Puno, First Gen president and chief operating officer.
First Gen said the transaction received strong interest from institutional investors and was oversubscribed.
Deutsche Bank AG has been mandated as sole bookrunner for the transaction.
First Gen, one of the leading renewable energy companies in the Philippines, owns the 1000-MW Santa Rita and 500-MW San Lorenzo natural gas-fired power plants in Batangas City.
The company has a capacity of 2,763 MW or approximately 25 percent of total installed capacity in the country.
In addition to its Santa Rita and San Lorenzo power facilities, First Gen is pioneering the development of additional gas-fired power plants as well as a liquefied natural gas (LNG) import and regasification terminal facility.
The power firm is aiming to build the first LNG terminal in the country near its existing natural gas power plant in Batangas.