LEVISTE-LED Solar Philippines Nueva Ecija Corp.’s (SPNEC) initial public offering (IPO) was nearly two times oversubscribed, its underwriter said in a statement on Wednesday. 

SPNEC is a subsidiary of Solar Philippines Power Project Holdings, Inc.

“SPNEC’s IPO was oversubscribed, receiving P5.3 billion in orders for the P2.7-billion offering, with strong demand from investors who want exposure to the first pure-play solar company to list on the PSE (Philippine Stock Exchange),” said Abacus Capital and Investment Corp.

Abacus Capital was tapped by SPNEC to be the issue manager and lead underwriter for the offer, while Investment Capital Corp. of the Philippines is a participating underwriter.

The oversubscription of the offer would lead SPNEC to have an P8.12-billion market capitalization.

SPNEC offered to the public 2.7 billion shares for P1 apiece. The company is set to list on the main board of the local bourse on Friday, Dec. 17, to mark the PSE’s 10th and last IPO this year.

The company plans to use net proceeds from the offer for the first 50 megawatts (MW) of its 500-MW solar power plant, as well as to acquire more land for the project’s expansion beyond 500 MW.

SPNEC aims to develop the largest solar project in Southeast Asia. The company is still at the pre-operating stage.

“We are grateful for the public’s faith in our ability to turn this power point into a power plant, and hope our work can live up to these expectations,” Solar Philippines Founder Leandro L. Leviste said.

The company is the first to list under the Supplemental Listing and Disclosure Rules for Renewable Energy (RE) Companies, which the PSE approved in 2011. The rules exempt RE firms from the PSE’s track record and operating history requirements.

The company was incorporated by its parent Solar Philippines in 2016. The following year, it was able to secure a service contract from the Department of Energy to develop the Nueva Ecija project, the construction of which was planned to commence by end-2021.

The Nueva Ecija project is aimed to support the Luzon grid’s thin reserves.

Meanwhile, Razon-owned Prime Infrastructure Holdings, Inc. recently made a P3.5-billion investment for a 50% stake in Solar Philippines’ three solar projects in Cavite, Batangas, and Tarlac with a capacity of 340 MW. — Keren Concepcion G. Valmonte