Solar Philippines Nueva Ecija Corp. (SPNEC), a subsidiary of Solar Philippines, will go public and sell shares to raise equity for its solar power project.
Solar Philippines founder Leandro Leviste said Monday SPNEC is preparing an initial public offering (IPO).
SPNEC is developing a 500MW solar power project in Peñaranda, Nueva Ecija. The IPO proceeds will serve as the equity for the construction of the project’s first 225 MW, which would be larger than any solar project operating in the Philippines today.
The company would seek further financing to complete the 500 MW. If completed, this will be larger than any solar project operating in Southeast Asia today, and larger than the combined total of all non-Solar Philippines solar projects operating in Luzon in the latest list published by the Department of Energy (DOE).
The company added that it aims to expand the project beyond this capacity amid the country’s growing demand for renewable energy.
“We’ve decided to make Solar Philippines Nueva Ecija Corp. our group’s first venture into the public markets because this is the asset that we are proudest to showcase: a site where will rise the largest solar project in the Philippines, with potential for further expansion given its proximity to Manila,” said Leviste.
“We aim to raise at least P1.3 billion to fund the equity construction of the project’s first 225MW, with the possibility of raising more to advance the expansion of the project. We will disclose the timing of the planned IPO as soon as this has been firmed up.”
The company aims to list under the Supplemental Listing and Disclosure Requirements for Renewable Energy (RE) companies approved by the Philippine Stock Exchange (PSE) in 2011. These rules allow development-stage project companies to list, subject to certain requirements including having a valid and subsisting service contract awarded by the DOE.
“The PSE showed great foresight in creating this program for RE companies. Through this offering, we hope to give the public a new option to invest in RE, and expand RE in the Philippines,” Leviste said.
SPNEC was incorporated in 2017, and since then has been securing land and permits for its project. The company plans to start construction of the project before the end of 2021.
Upon the project’s completion, Nueva Ecija would host the largest of five utility-scale Solar Philippines projects planned to be operational by 2022. The other projects of Solar Philippines include one in Batangas, with an operational 63 MW in partnership with Korea Electric Power Corporation (KEPCO); one in Tarlac, being expanded to up to 200 MW in partnership with Prime Infra of the Razon Group; and another two in Batangas and Cavite, with a combined capacity of 140 MW planned to be fully operational by 2022.