Alternergy makes PSE debut after P1.61-B IPO
March 25, 2023 | The Manila Times
RENEWABLE energy firm Alternergy debuted in the main board of the Philippine Stock Exchange (PSE) on Friday after having raised a total of P1.61 billion from an initial public offering (IPO).
Following the ringing of the bell ceremony, Alternergy became an officially listed company with the stock symbol ALTER.
The firm offered 1.150 billion in primary shares, representing 32.16 percent of the company's economic ownership, at a price of P1.28 per share. A total of P1.47 billion was raised from primary shares and P147 million from an over-allotment.
"As the first IPO for the year, Alternergy has once again proven to be a pioneer in joining the public equities market," Alternergy chairman and former Energy secretary Vince Perez said.
Alternergy has said that proceeds from the IPO would be used to shift two shovel-ready projects — the Solana Solar Power Project in Hermosa, Bataan and the Lamut Run-of-River (ROR) Hydro Project in Ifugao — to the construction phase in the coming months.
These two projects will receive 35 percent of the IPO proceeds and will form part of the equity capital contribution of the company for its development and construction.
Alternergy will also embark on more aggressive pre-development activities for the pipeline of projects using IPO proceeds.
These include the Ibulao ROR Hydro Project, Tanay and Alabat Wind Projects and offshore wind projects. A third of the IPO proceeds will be used to pay off liabilities in acquiring controlling stake in the existing Kirahon Solar Power Project.
"Overall, 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," Alternergy President Gerry Magbanua said.
Investment Capital Corp. of the Philippines (ICCP) served as the sole issue coordinator for the transaction, while BDO Capital and ICCP were joint issue managers and joint lead underwriters. Unicapital Securities served as co-lead underwriter.
Alternergy's share price ended the day unchanged at P1.28 per share amid a 1.01-percent gain for the benchmark Philippine Stock Exchange index.