National electricity grid holding firm Synergy Grid & Development Phils. has priced its follow-on offering at P12 per share, setting the size of its re-initial public offering (re-IPO) at a maximum of P13.85 billion.
An analyst estimated that at P12 per share, Synergy was valued at around five times its potential cash flow for 2022. This enterprise value as a ratio of earnings before interest, taxes, depreciation and amortization is seen to translate to a dividend yield of 7 percent for next year.
Synergy Grid, led by business tycoons Henry Sy Jr. and Robert Coyiuto Jr., will offer to the public up to 1.053 billion primary common shares, with an overallotment option of up to 101 million secondary shares. The share sale will start on Tuesday, Oct. 26, and will run until Nov. 2. Tentative listing of the new shares on the Philippine Stock Exchange is on Nov. 10.
Synergy intends to use proceeds to inject fresh capital into 60-percent subsidiary National Grid Corporation of the Philippines (NGCP), the sole operator of the country’s transmission network.
The equity deal will bring at least 20.21 percent of shares to public hands, increasing to 22.12 percent if the overallotment option is exercised. It will have a post-re-IPO market capitalization of P63.2 billion.