Alternergy gauges market readiness for P5 billion share sale

Even after securing regulatory approval, Alternergy president Gerry Magbanua said any share issuance would still be carefully scheduled to align with the prevailing market environment.

MANILA, Philippines — Alternergy Holdings Corp. is taking a wait-and-see approach for its planned P5-billion capital raise, carefully timing it to local market signals and global conditions amid Middle East tensions.

Even after securing regulatory approval, Alternergy president Gerry Magbanua said any share issuance would still be carefully scheduled to align with the prevailing market environment.

“We will time any issuance tactically, keeping a close eye on global macroeconomic trends and local market conditions,” Magbanua said.

The company plans to raise up to P5 billion through the issuance of perpetual preferred shares to bankroll its robust pipeline of renewable energy projects.

The planned offering, to be issued in one or more tranches over five years, consists of up to 50 million perpetual preferred shares priced at P100 apiece. It will be drawn from the company’s unissued capital stock.

Alternergy shareholders authorized the share sale during a special meeting on Wednesday, following the board of directors’ approval last month.

“We see this unanimous approval as a vote of confidence in renewable energy’s potential, especially amidst global energy security concerns. It is a clear signal that sustainable investments are on the right track,” Magbanua said.

The issuance is still subject to regulatory approval by the Securities and Exchange Commission and the Philippine Stock Exchange.

Proceeds from the transaction will support the development of Alternergy’s projects awarded under the government’s fourth green energy auction round.

“The Middle East tensions just highlighted how vulnerable the global economy is, including the Philippines. It is time to move faster toward renewables,” Magbanua said.

Published by The Philippine Star