MRC Allied, Inc. expects to push through early next year with the issuance of new shares amounting to around P1 billion to fund its renewable energy development projects, its top official said.
“We’d like to see the investment first half of next year,” Augusto M. Cosio, Jr., MRC Allied president and chief executive officer, said during the company’s year-end media briefing in Makati City on Tuesday.
The fund-raising was stalled because of issues with the Securities and Exchange Commission (SEC) relating to the use of the proceeds, he said.
In October, MRC Allied announced that it was consolidating under the listed company all its assets and portfolio, while its operating subsidiaries will be implementing the projects.
Mr. Cosio was appointed after the resignation of Gladys N. Nalda, who was named president and chief executive of subsidiary Menlo Renewable Energy Corp., which will pursue the group’s renewable energy projects.
Before the reorganization, MRC Allied announced in June plans to issue 1,428,571,428 common shares. The shares at P0.70 would amount to nearly P1 billion.
Mr. Cosio said the issuance of new shares will be done through private placement.
“We were somewhat constrained not to actively offer because of the pending issue with the SEC… We’re trying to approach institutions rather than individuals,” he said, adding that these institutions are private equity investors, fund managers, investment companies and investment banks.
“One of my goals is to try to institutionalize the shareholding of MRC. Right now it’s held by retail investors. For that to happen we have to have a good program to offer the institutions,” Mr. Cosio added.
Should the private placement push through, the P1 billion worth of new shares would account for about a quarter of the company’s capital.
“Right now, [our] total market cap[italization] is about a little over P3 billion, so it will be close to 25% of the market cap,” he said.
Mr. Cosio said foreign institutional investors would have greater appreciation of what the company is doing.
Earlier this month, the company announced that it had executed a memorandum of agreement (MoA) to develop at least 1,100 kilowatt-peak (kWp) of solar photovoltaic (PV) rooftop system for a mall in Mindanao.
It also entered into an MoA with Edward Marcs Philippines, Inc. for the design, supply, delivery, construction, installation, testing and commissioning of its 550 kWP grid-tied solar PV rooftop project for two rice milling plants in northern Luzon.
In October 2017, MRC Allied bought a 15% stake in a 50-MW Sulu Electric Power and Light (Phils.), Inc. (Sepalco), which translates to an attributable capacity of 7.5 MW. — Victor V. Saulon