SMC Global Power Holdings Corp., the power arm of San Miguel Corp., is pushing through with its initial public offering in the third quarter, a top executive said Tuesday.
“Yes, in the third quarter we will conduct the listing. San Miguel Power will conduct an IPO,” San Miguel Corp. president Ramon Ang said.
Ang said the company was making good on its promise to list SMC Global Power’s shares in the Philippine Stock Exchange.
“The power business now is not like before that is very bullish. Now, prices have gone down but since we promised even before to do an IPO, whatever price or whatever outlook, San Miguel Power will go with IPO,” Ang said.
The diversified power portfolio gives SMC Global the ability to provide the most competitive and reliable supply offers to customers and power the growth of the economy, the company said.
SMC Global Power was originally scheduled to list with the Philippine Stock Exchange in 2011, but was the plan was delayed because of the global financial turmoil.
San Miguel announced in 2013 it planned to raise $700 million from the planned IPO, but decided to defer it.
“The equity value of our power generation company is $1.5 billion. If we sell at least 49 percent, we will raise about $700 million,” Ang said at that time.
A registration statement it previously filed with the Securities and Exchange Commission showed SMC Global planned to offer between 348 million and 519.7 million primary and secondary shares at P71 per share.
Ang did not say how much the company planned to raise this year. San Miguel previously said proceeds from the public offering would be used to acquire and build greenfield power projects.
SMC Global has three power plants under its independent power producer administrator portfolio, including Sual, Pagbilao and San Roque power plants.
The 1,218-megawatt Sual power plant is the largest coal-fired power plant in the Philippines in terms of installed capacity.
Team Energy, a joint venture between Marubeni Corp. and Tokyo Electric Power Corp., operates the Sual plant. On Aug. 28, 2009, San Miguel Energy Corp. won the bidding to be the IPPA administrator of the Sual power plant.