SOLAR Philippines Nueva Ecija Corp. (SPNEC) is giving its shareholders the right to acquire one share for every 1.28 shares held in a stock rights offering (SRO) it targets to hold this June.
In a disclosure on Monday, the listed renewable energy company confirmed its plan to file the rights offering based on its current unissued authorized capital stock (ACS) of about 1.88 billion shares.
“SPNEC is now preparing to file its SRO application, after which the timing would be subject to regulatory approval, but no longer subject to an increase in ACS to the extent of its current unissued ACS,” it said.
The entitlement shares are priced at a range of P1.60 to 1.76 each, with P1.68 as midrange. SPNEC’s current public float is around 2.4 billion shares.
The company said the shares priced at P1.68 apiece is a 16% discount to SPNEC stock’s volume-weighted average price over the past two months. The price range is at 12-20% discount.
Proceeds of the offering is intended to fund the acquisition of land to be used to develop 4 gigawatts (GW) of solar projects, which would form part of its target to build 10 GW to be funded by further share issuances.
The offering is subject to the Philippine Stock Exchange (PSE) rule that a company can only conduct a new offering after 180 days from its initial public offering. The company was listed in the exchange on Dec. 17, 2021.
Earlier this month, the company’s stockholders approved an increase in its authorized capital stock to 50 billion shares from 10 billion shares.
On Monday, shares in the company rose by P0.02 or 1% to close at P2.02 each.
