The Philippine Stock Exchange (PSE) has given its approval to the stock rights offering (SRO) of solar power plant company Solar Philippines Nueva Ecija Corp. (SPNEC) to list approximately 1.88 billion shares (1,875,649,995).
In its notice of approval dated July 28, 2022, the PSE also approved the proposed schedule of the SROs, with an ex-date of August 22, 2022, a record date of August 25, 2022 and an offer period at from August 30, 2022. to September 5, 2022.
Last month, the Securities and Exchange Commission also issued an exempt transaction confirmation confirming that the solar company’s planned SRO is exempt from the registration requirements of the Securities Regulation Code.
SPNEC plans to offer the shares in a price range of 1.50 to 1.76 pesos per share, according to its July 11, 2022 prospectus.
The company is looking to raise around 2.8 billion pesos to 3.3 billion pesos from the supply which will then be allocated to project development (including securing land and off-take agreements).
It also supports SPNEC’s goal of developing 10 gigawatts of solar projects by 2025, made possible by its increase in authorized share capital and asset-for-equity exchange with its parent company, Solar Philippines.
The company’s developments include the Terra Solar 3.5 GW 4.5 gigawatt-hour solar battery project, which plans to supply Meralco with 850 megawatts (MW) of average merit. This was billed as the “largest solar project in the world” and would be more than twice the total solar operating capacity in the Philippines today.
These are also projects that were contracted through the Department of Energy’s green power auction, in which Solar Philippines won 70% of all renewable energy capacity in the auction ( 1,380 MW out of 1,967 MW) and 91% of all solar capacity (1,350 MW out of 1,490 MW).
Solar Philippines’ shares in these projects are part of the assets that would be held by SPNEC after the share exchange.