The board of directors of Leviste-led Solar Philippines Nueva Ecija Corp. (SPNEC) has approved the use of its initial public offering (IPO) proceeds for land acquisition and capital expenditures (capex) effective Jan. 19.
In a disclosure on Tuesday, SPNEC said that the board also approved to allocate its IPO proceeds for bid bonds, bid security, and other expenses for potential offtake agreements, during a meeting on Dec. 20.
The move will enable the company to be responsive to contracting opportunities in the future, SPNEC said.
The company earlier said it would use the net proceeds of its P2.7-billion IPO to finance the development of 50-megawatt (MW) solar project, the first phase of its 500-MW solar power plant in Nueva Ecija province, the construction of transmission line, lease for 2022, and general corporate purposes.
On its market debut on Dec. 17, SPNEC inched up 1% from its IPO price of P1.00 per share. Up to 1.72 billion shares worth P1.61 billion were traded that day.
“Subject to applicable law, rules and regulations to be clarified, the incorporation and funding of wholly-owned subsidiaries to hold the IPO’s use of proceeds and to receive instructions from the company for the use of such proceeds,” the company said.
The board also approved the incorporation and the transactions with banks to secure bid bonds and bid security for the company’s projects.
SPNEC is the first company to be listed in the exchange without conducting commercial operations.
On Tuesday, SPNEC shares gained four centavos or 3.6% to close at P1.15 apiece. — Marielle C. Lucenio
