Solar Philippines has cued for an initial public offering (IPO) a wholly owned subsidiary—instead of itself—as the group led by Leandro Leviste intended to take advantage of a Philippine Stock Exchange (PSE) rule that allows the listing of companies with nascent projects.
“We’ve decided to make Solar Philippines Nueva Ecija Corp. (SPNEC) our group’s first venture into the public markets because this is the asset that we are proudest to showcase,” Leviste said in a statement.
He was referring to the land on which would rise “the largest solar project in the Philippines, with potential for further expansion, given its proximity to Manila.”
Established in 2017, SPNEC is developing a 500-megawatt solar project in Peñaranda, Nueva Ecija.
Leviste said proceeds from the planned IPO of SPNEC would serve as the equity for the construction of the initial 225-MW component.
He added that the company would seek further financing to complete the 500 MW, and that SPNEC intended to expand the Peñaranda project beyond this capacity.
SPNEC has been securing land and permits for this project. It plans to start construction before the end of 2021 and start operations in 2022.
Leviste said SPNEC planned to list under the Supplemental Listing and Disclosure Requirements for Renewable Energy (RE) Companies, which the PSE approved in 2011.
He noted that these rules allowed development-stage project companies to list, subject to certain requirements including having a valid and subsisting service contract awarded by the Department of Energy.
“The PSE showed great foresight in creating this program for RE companies,” Leviste said. “Through this offering, we hope to give the public a new option to invest in RE, and expand RE in the Philippines.”
Leviste announced plans for an IPO of the parent firm Solar Philippines in late 2020, when the company changed tack to focusing on engaging partners rather than competing with other players to carve out a space in the market.