Ayala-led ACEN Corp. on Monday said it had secured a permit from the Securities and Exchange Commission for the public offer and sale of up to 25 million preferred shares.
In a regulatory filing, the listed energy company of the Ayala group said the 25 million preferred shares are the first tranche of its three-year shelf registration of up to 50 million preferred shares.
It said the first tranche includes about 12.5 million perpetual, cumulative, non-voting, non-participating, non-convertible, redeemable, and re-issuable Philippine peso-denominated preferred shares.
The offering has an oversubscription allotment of up to 12.5 million preferred shares priced at P1,000 each, which will be offered in two series for a total of P25 billion, the company said.
The shares will be traded under ACENA for the series A preferred shares and ACENB for the series B of the preferred shares offering.
“This issuance further strengthens ACEN’s balance sheet and will help the company attain its 2030 aspiration of achieving 20 gigawatts (GW) of renewables. ACEN is currently building around 1,100 megawatts (MW) of renewable energy plants in the Philippines, and more projects are expected to be added in the coming years. This financing initiative will enable ACEN to continue its aggressive renewables expansion,” Eric T. Francia, president and chief executive officer of ACEN, told the stock exchange on Monday.
Net proceeds from the preferred shares will fund the company’s new or existing eligible green projects or will be used for refinancing of short-term bridge loans for eligible green projects, ACEN said.
“We are greatly encouraged by the interest shown by both institutional and individual investors in this offering, even amidst tight financial conditions,” said Maria Corazon G. Dizon, chief finance officer of ACEN.
She said it is an honor for ACEN to pioneer the issuance of the first-ever peso-denominated “fixed-for-life equity instrument in the country, making a significant mark in the financial market.”
“This underlines our determination to blaze new trails in the financial sector,” she added.
ACEN said the offer period is from Aug. 11 to 23, with the target listing of the shares on the main board on Sept. 1.
At the local bourse on Monday, shares in the company gained four centavos or 0.78% to end at P5.15 each. — Ashley Erika O. Jose