Direct offering: Misamis power firm ‘going public’ sans underwriter

MANILA  -Power firm Pacerm-1 Energy Corp. is raising as much as P15.89 million through a direct public offering (DPO) in September, after obtaining clearance from the Securities and Exchange Commission (SEC).

In a statement on Tuesday, the SEC said Pacerm-1 would publicly offer 26,891 common shares priced at P2,100 per share from Sept. 1 to Nov. 30.

“The shares may be sold to any person, partnership, cooperative, corporation or trust account,” it said.

A DPO allows a company to sell shares directly to the public without financial intermediaries, thus avoiding the usual expenses incurred from the typical initial public offering.

Proceeds will be used for the payment of long-term loans earlier tapped to fund its power generation projects, the SEC said.

Expenses related to the offer were deducted from the P56.47-million estimated gross proceeds, according to a preliminary prospectus dated May 12.

The offering is being made in compliance with an order by the Energy Regulatory Commission to offer not less than 15 percent of its outstanding capital stock to the public.

Pacerm-1 has tapped Philippine Business Bank as its main depository bank and loan creditor.

The company currently operates a 10.5-megawatt diesel-fired power plant in El Salvador City, Misamis Oriental province and provides electricity for customers of Misamis Oriental-1 Rural Electric Service Cooperative Inc. under a 15-year power supply agreement signed in 2013. INQ