Shares of Solar Philippines Nueva Ecija Corp. (SPNEC) were little changed during its debut on the Philippine Stock Exchange (PSE) on Friday, closing at P1.01 apiece versus its listing price of P1, as the company braved headwinds early into the trade.
“Despite the headwinds, we are pleased that the PSE’s last IPO [initial public offering] of 2021 has ended on a high note. We believe in this issuance and look forward to see SPNEC to continue to create value coming into 2022,” said Paul Soo, chairman and CEO of Abacus Capital and Investments Corp., the offering’s underwriter.
SPNEC is the first pure play solar company to be listed on the PSE.
Its IPO was oversubscribed, receiving P5.3 billion in orders for the P2.7-billion offering, with strong demand from investors who want exposure to the first pure-play solar company to list on the PSE.
This oversubscription comes as the company’s IPO was sized at the maximum of its indicative range of up to 2.7 billion shares at up to P1.00 per share, giving SPNEC a market capitalization of P8.12 billion.
“I am optimistic that this solar farm project will be equally successful and profitable as the two other solar farms of SPNEC’s parent company in Batangas and Tarlac,” PSE President Ramon S. Monzon said.
“Aside from being the first to list under the Supplemental Rules for Renewable Energy, this IPO holds the record for having the youngest chairman of a listed company, Leandro Leviste at 28 years old. This should serve notice to other young entrepreneurs that they too can access capital through the stock market,” he said.
“With this IPO, we hope it can be said, that capital should not be the constraint for our country’s transition to renewable energy, as long as companies deliver,” Leviste said.
Securities and Exchange Commission Chairman Emilio B. Aquino said regulators are optimistic that SPNEC’s example will pave the way for more renewable energy companies to list under the supplemental rules.
“SPNEC’s listing marks an ambitious step forward for the progress of both the renewable energy and capital markets in the Philippines. Its public offering accomplishes two major milestones: First, with the proceeds of the IPO, SPNEC aims to develop a 500 megawatt solar power plant,” Aquino said.
“Second, this listing marks the first time that a renewable energy company will list in the PSE under the supplemental and disclosure requirements for renewable energy companies.”
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