25 April 2021 – The Securities and Exchange Commission (SEC) has approved the P16.48-billion follow-on offering of AC Energy Corp., proceeds of which will be used to fund its expansion projects.
In its meeting on Thursday, the SEC en banc has approved AC Energy’s registration statement covering a total of 2.01 billion common shares, some 1.58 billion shares of which shall comprise the primary offer priced from P6 to P8.20 per share, and 330.24 million shares as its secondary offer. The offer comes with an overallotment option consisting of up to 100,000,000 common shares.
At the maximum price, AC Energy and the selling shareholders may raise P16.48 billion from the offer, assuming the oversubscription option is fully exercised.
AC Energy will use the net proceeds from the primary offer, estimated at P12.64 billion, to partially fund the development of power projects, inorganic growth opportunities, repayment of loans and reduction of payables, as well as other general corporate requirements.
Based on its latest submissions to the SEC, AC Energy will run the public offering from May 3 to 7, and list the shares on the Philippine Stock Exchange on May 14.
The company engaged BPI Capital Corp. as the sole global coordinator, underwriter, and joint bookrunner for the offer. CLSA and UBS will serve as international joint bookrunners, as well as joint bookrunners alongside BPI Capital.
Shares of AC Energy closed Thursday at P7.19 apiece.
In November 2020, the company said it has set its sights on achieving half of its target of 5,000MW renewable energy (RE) capacity this year.
Of the target, the company said 1,500MW of RE projects are lined up for 2021. “We have 1,500MW worth of projects in the region including Philippines [500MW], Australia [500MW] and the remaining 500MW in India and Vietnam. Those four markets, we expect to build 1,500MW.”
AC Energy, which has 1,000MW of capacity in its portfolio, will integrate its international business, which currently has 900MW RE capacity.
The company aspires to be the largest listed renewables platform in Southeast Asia, with the goal of reaching 5,000 MW of renewables capacity by 2025.