NexGen pegs IPO price at P1.68/share

MANILA, Philippines — Soon-to-be-listed renewable energy player NexGen Energy Corp. has priced the shares on its initial public offering (IPO) at the top end of its price guidance.

The final offer price for NexGen’s common shares has been set at P1.68 apiece.

With the offer price, the estimated gross proceeds from the sale of the firm shares will be at P504 million and an additional P75.6 million from the sale of option shares.

The company’s IPO consists of 300 million common shares as its primary offering with an over-allotment option of up to 45 million secondary common shares.

The offer period will start on July 1 and end on July 8. Listing on the Philippine Stock Exchange’s Small, Medium and Emerging Board is targeted on July 16.

Established in 2017, NexGen operates renewable energy facilities in the country.

The company intends to use the net proceeds from the offer to partially fund the equity portion of the Zambales 2 solar project, Silang Maragondon wind project and the Asisan wind project.

It will likewise be used to fund the development or acquisition of renewable energy projects, development of the power facilities for a climate controlled indoor farm as well as operating and working capital requirements.

NexGen said the company would not receive any portion of the proceeds from the sale of the option shares by the selling shareholder.

China Bank Capital Corp. has been mandated as the sole issue manager and sole bookrunner for the offer, with Investment & Capital Corp. of the Philippines to serve as joint lead underwriter.

NexGen’s IPO is the third for the year following OceanaGold (Philippines) Inc.’s P6.08 billion IPO last month and Citicore Renewable Energy Corp.’s P5.3 billion IPO earlier this month.