SPNEC eyes SRO in June

MANILA, Philippines — Solar Philippines Nueva Ecija Corp. (SPNEC) is targeting to conduct its stock rights offering (SRO) in June.

The offer price range has been set at P1.60 to P1.76 per share with the middle range set at P1.68 per share, which reflects a six percent discount to SPNEC stock’s volume-weighted average price over the past two months.

The average of SPNEC’s SRO price range of P1.68 per share is a 17 percent discount to SPNEC’s closing price of P2.02 per share, and a 28 percent discount to SPNEC’s all-time high of P2.34 per share.

The schedule of the offering is subject to the PSE rule that a company can only conduct a new offering after 180 days from its IPO.

SPNEC is now preparing to file its SRO application, after which the timing would be subject to regulatory approval, but no longer subject to an increase in authorized capital to the extent of its current unissued ACS.

Proceeds from the SRO will be used for the acquisition of land to be used for four GW of developments, which would form part of the total 10 GW of developments that would be funded from further share issuances enabled by SPNEC’s increase in authorized capital stock.

The projects are in joint venture with Razon-led Prime Infra, Terra Solar, for which Solar Philippines is preparing land and permits that will form part of its investment in these projects.

Terra Solar is the original proponent for an unsolicited proposal submitted to Manila Electric for the supply of 850 MW mid-merit for up to 13 hours a day from at least 2.5 GW of solar and 4 GWh of battery storage.

The stock closed one percent higher at P2.02 per share yesterday after declining by 3.5 percent mid-trading.