Updated on July 27, 2024 at 9:51 a.m.
NexGen Energy Corp., a renewable power company led by businessman Dexter Tiu, has set the final price of its initial public offering (IPO) at P1.68 per share.
The announcement came a few weeks after the subsidiary of Pure Energy Holdings Corp. received the go-signal from the Securities and Exchange Commission.
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Offer period is set from July 1 to July 8. Listing is scheduled on July 16.
The company, which currently has three solar power plants with an aggregate capacity of 13.85 megawatts (MW), will be selling 300 million common shares. Another 45 million will be sold in case demand surpasses the base offer.
Positive market outlook
Proceeds will go to the company’s plan to build renewable energy projects in Zambales and Cavite, among others. It aims to boost capacity to 2,350 MW in the next 10 years.
“So far, the IPOs this year have been positively received, and hoping that will be the case for NexGen,” Regina Capital Development Corp. head of sales Luis Limlingan said.
The company is proceeding with its IPO to ride on the positive market outlook for the renewable energy sector.
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Think tank International Energy Agency estimates the share of renewables in the country’s energy mix will grow to 27 percent by 2028 from the current 22 percent. The Philippine government seeks to achieve a 35-percent renewable share by 2030.
NexGen will be the third market debutante at the Philippine Stock Exchange (PSE) this year.
Mining firm OceanaGold Philippines launched its IPO in May, raking in P6.08 billion. Power company Citicore Renewable Energy Corp., meanwhile, raised P5.5 billion from its debut this month.
PSE expects to see up to P40 billion raised from at least six IPOs this year.
NexGen is also the second Tiu-led company to go public since last year. Pure Energy subsidiary Repower Energy Development Corp. listed its shares in June 2023.