Alternergy Holdings Corp., founded by former Energy Secretary Vicente Perez, is pushing forward with a P2.2-billion initial public offering despite challenging market conditions.
The Securities and Exchange Commission said on Wednesday it cleared the company’s public offering during a meeting last Nov. 8. The offer would still require the approval of the Philippine Stock Exchange.
Alternergy Holdings is selling up to 1.47 billion shares at a maximum offer price of P1.48 per share to finance the development of new projects and for debt repayment.
These would be composed of 1.28 billion common shares and an over allotment option for another 192.2 million shares.
The SEC did not indicate any revised timeline for the offer. Alternergy Holdings had indicated in a previous filing it was targeting to list the shares on Nov. 25 this year.
A number of IPOs have been pushed back due to volatility in the stock market.
These include the P28- billion IPO of billionaire Enrique Razon Jr. and the P4.5-billion offer of North Star Meat Merchants Inc.
Eight companies have listed so far these year. These were Haus Talk Inc., Figaro Coffee Group Inc., Citicore Energy REIT Corp., Bank of Commerce, CTS Global Equity Group, Inc., Raslag Corp., VistaREIT Inc., and Balai ni Fruitas Inc.
For its part, Alternergy Holdings said proceeds would be used for the development and construction of projects, debt payment for the acquisition of Kirahon Solar Energy Corp., pre-development expenses for projects in the pipeline, and general corporate requirements.
“Alternergy Holdings is a renewable energy holding company with a portfolio of investee companies with wind, solar, hydro, floating solar, and battery storage power projects. It currently has 67.24 megawatts of operating assets in wind and solar, with potential installed capacity of up to 1,368 MW of renewable energy,” the SEC said in a statement.
It earlier hired BDO Capital & Investment Corp. and Investment & Capital Corp. of the Philippines as joint issue managers and joint lead underwriters for the IPO.