RENEWABLE energy company Alternergy Holdings Corp. targets to hold on March 24 an initial public offering (IPO) of shares from which it expects to raise up to P1.87 billion to fund ongoing and prospective projects.
According to the company’s amended preliminary prospectus, the maiden listing covers the sale of up to 1.15 billion common shares, with an overallotment option of up to 115 million.
The shares will be sold at an offer price of up to P1.48 apiece, with the company expecting gross proceeds of up to P1.70 billion from the sale of firm shares.
The common shares to be sold are lower than the number previously set by the company in June last year at 1.28 billion with an overallotment option of up to 192.22 million.
Alternergy’s updated prospectus dated Feb. 14, 2023 set the listing of shares on the main board of the Philippine Stock Exchange (PSE) on March 24 under the ticker symbol ALTER.
The offer period for the IPO is expected to run from March 13 to 17 subject to the approval of the PSE and the Securities and Exchange Commission.
Under its previous prospectus, the company scheduled the IPO’s offer period from Nov. 11 to Nov. 17, 2022, with listing and trading on the main board set on Nov. 25, 2022.
The company received PSE approval of its listing on Feb. 7, 2023. It expects a post-IPO market capitalization of up to P5.82 billion.
Alternergy tapped Investment & Capital Corp. of the Philippines as sole issue coordinator, and as joint issue manager and lead underwriter together with BDO Capital & Investment Corp., while Unicapital, Inc. was assigned as the offering’s co-lead underwriter.
The company expects to use an estimated P564 million or 35% of the P1.62-billion net proceeds for the construction of projects under development, while around P522.19 million or 32% for the payment of acquired Kirahon Solar Energy Corp. shares.
Alternergy will also be using 21% of the net proceeds or P340 million for the pre-development expenses of projects in the pipeline.
For projects under development, the company plans to break ground for its Solana solar project and to start early works on its Lamut hydropower project in the first quarter of 2023.
Meanwhile, it is planning to finance through its IPO the pre-development works on its Ibulao hydropower project, Tanay wind project, Alabat wind project, and offshore wind projects estimated to have a capacity of 1,000 megawatts.
Alternergy is led by Vicente S. Perez, Jr., a former secretary of the Department of Energy. — Justine Irish D. Tabile