Alternergy debuts at stock exchange
March 25, 2023 | The Philippine Star
MANILA, Philippines — Renewable energy firm Alternergy Holdings Corp. raised P1.61 billion from its initial public offering (IPO).
The company made its debut yesterday on the main board of the Philippine Stock Exchange. It is the first company to go public this year.
Alternergy offered a total of 1.150 billion primary shares at an initial price of P1.28 per share.
In a media briefing yesterday, Alternergy president Gerry Magbanua said the company received a lot of interest from potential partners following its IPO.
“As a result of going through this IPO, a lot of companies, a lot of other developers have come to us wanting to partner with us for many reasons,” Magbanua siad.
“One is obviously they could see that we now have a platform where we could raise capital; second is that they believe in the Alternergy story in terms of our ability to develop projects, considering our background,” he said.
Alternergy chairman and former energy secretary Vince Pérez said the company’s public listing gathered foreign and local investors from all walks of life who have a shared goal of promoting sustainability investments.
“We have always been strong advocates for what we call the ‘green democratic capitalism’ – giving every Filipino family, every young professional, every family office, the opportunity to participate in a renewable energy IPO and own a part of a green energy company,” he added.
With the expected proceeds from the IPO, Alternergy will roll out two of its shovel-ready projects to construction phase in the coming months, particularly the Solana solar power project in Hermosa, Bataan and the Lamut run-of-river (ROR) hydro Ppoject in Lamut, Ifugao.
“These two projects will receive 35 percent of the IPO proceeds which will form part of the equity capital contribution of the company for its development and construction,” the company said.
Alternergy said it would embark on more aggressive pre-development activities for the pipeline of projects using IPO proceeds. These projects include the Ibulao ROR hydro project, Tanay and Alabat wind projects and offshore wind projects.
The energy firm said a third of the IPO proceeds will be used to pay off liabilities in acquiring a controlling stake in the existing Kirahon solar power project. Other uses of the IPO proceeds will be allocated for general corporate requirements and working capital to operationalize the company’s retail electricity supplier license.
“Our listing at the PSE is part of the continuing growth story of Alternergy. The founders of Alternergy took the bold step when they, along with other same-minded individuals, built the Bangui Bay Wind Farm in 2005. We are listing at the PSE against a backdrop of ongoing global uncertainties. But we believe these challenges are blurred by the lasting impact of building clean and sustainable energy projects for the next generation,” Magbanua said.