Synergy Grid FOO strong

MANILA, Philippines — Demand for the upcoming follow-on offering (FOO) of Synergy Grid & Development Philippines Inc., the listed holding company of Henry Sy Jr. and Robert Coyiuto Jr., is strong especially after the price cut, according to the deal’s domestic coordinator.

BDO Capital & Investment Corp. president Ed Francisco told The STAR there has been a spike in demand from investors following the announcement of the new price range for the FOO.

“It’s looking very good. Demand is getting stronger after the price was tightened,” Francisco said.

Synergy announced a lower price range of P12 to P17 per share last week from P15 to P25 per share as earlier indicated in its registration statement. The company is offering 1.053 billion common shares.

At the new price range, Synergy could raise up to P17.9 billion. The listing is set on Nov. 10 following the offer period, which will run from Oct. 26 to Nov. 2.

Francisco said Synergy’s FOO is a good deal. “It’s already a bargain because of the holding company discount and it’s cheaper than Meralco (Manila Electric Co.),” he said.

Synergy indirectly owns a majority stake in the National Grid Corp. of the Philippines (NGCP), the country’s sole transmission operator.

Investors participating in Synergy’s FOO will effectively own a stake in NGCP, Francisco said.

“The FOO of Synergy is a way for investors to effectively own NGCP. The listing will be substitute for the initial public offering of NGCP,” Francisco said.

NGCP is required to go public as part of its compliance with the Electric Power Industry Reform Act (EPIRA) of 2001, the law that privatized the country’s power assets. Under the EPIRA, power companies are required to sell a portion of their shares to the public.

Synergy’s FOO is one of three public offerings in store for stock market investors in the coming weeks.

The two others are the P7.5 billion FOO of Lucio Co-owned The Keepers Holdings and the P4.5 billion IPO of AllDay Marts Inc.

The Keepers Holdings has a tentative listing date on Nov. 19 while AllDay’s market debut is slated on Nov. 3.