FIRST GEN Corp. of the Lopez Group aims to raise P15 billion from a stock rights offering, according to a memorandum posted at the website of the Philippine Stock Exchange.

On Wednesday, the PSE approved First Gen?s plan to list up to 2.77 billion common shares at an offer price that still would have to be determined.

?(The offer price) will be at a discount of between 34 percent and 68 percent of the volume-weighted average closing price of First Gen?s shares for the five trading days preceding the date of the signing of the underwriting agreement, rounded down to the nearest price of share prices listed on the PSE,? the memorandum stated.

Proceeds from the stock rights offer will be used by First Gen for the partial repayment of the group?s existing debt and for general corporate purposes, including working capital and investments.

First Gen earlier said that the rights offer would be an ?equitable fundraising option because existing eligible shareholders would have the opportunity to subscribe their pro-rata shareholding in the company and thus not be subject to dilution.?

Each eligible shareholder is entitled to subscribe to a still undetermined number of rights shares for every common share held as of the record date. Each application must also be for a minimum of 100 rights shares.

Domestic underwriters for the planned offering were BDO Capital and Investment Corp. and RCBC Capital Corp. The company?s international underwriter was Deutsche Bank AG (Hong Kong branch).

However, the PSE board?s approval of the stock rights offering is subject to the fulfillment of certain conditions. First Gen had been directed to submit a number of requirements, which included certified true copies of Approved Amended Articles of Incorporation, Certificate of Increase in Authorized Capital Stock, a certified copy of the complete list of stockholders of record, among others.

Just last week, First Gen?s stockholders had approved the increase in its authorized capital stock to P7.25 billion from P3.27 billion, in line with its stock rights offering.

First Gen had said the increase would be divided into 6 billion common shares and 2.5 million preferred shares.