The SPNEC Board of Directors approves the increase in share capital
The Board of Directors of Solar Philippines Nueva Ecija Corp. (SPNEC) has approved an increase in the company’s authorized share capital to 50 billion shares from 10 billion shares, subject to shareholder and regulatory approvals.
This would prepare SPNEC for asset-for-equity swaps with Solar Philippines Inc., its parent company, and additional capital raises to expand its portfolio of solar projects, subject to third-party assessments and approvals. The company plans to have further consultations and a meeting of shareholders on this proposal.
This comes in light of “strong investor interest” in shares of SPNEC, which has had more than 5 billion pesos in trading over the past month and has become PSE’s best-performing IPO of 2021. closing the year up 28%.
“We are grateful for the level of interest in SPNEC, even as a one-time pre-operations project. At the same time, we note the feedback that the addition of our projects already operational or under contract would make the SPNEC even more attractive. We want to take this opportunity to give this option to our public shareholders, in the interest of advancing the value and profitability of SPNEC,” said Solar Philippines Founder Leandro L. Leviste.
“We see that other companies have successfully listed assets through share swaps, and we support SPNEC doing the same if that is what our public shareholders want.”
Solar Philippines was founded in 2013 to accelerate the adoption of solar energy in the Philippines. Since then, it has developed a pipeline of more than 10 gigawatts of solar projects, according to Department of Energy figures. These include 63 megawatts operational in Batangas in partnership with Korea Electric Power Corporation; 340 MW in operation and under construction in Tarlac, Batangas and Cavite in partnership with Prime Infra of the Razon group; and several projects on the roofs of SM shopping centers.
In 2020, Solar Philippines signaled its strategy to accelerate its developments through strategic partnerships. This is in support of the DOE increasing the Renewable Portfolio Standard target to 35% of the nation’s energy coming from renewables by 2030, which would translate into the need to build more than 20,000 MW of solar energy.