National Grid owner pegs final offering price at P12 a share

Synergy Grid & Development Phils. Inc. set the final offering price of its shares at P12 each, the bottom end of the price range.

Synergy Grid at this price level will raise P13.85 billion from the sale of 1.15 billion shares, including the over-allotment option.

BDO Capital and Investments Corp. president Eduardo Francisco said the demand was strong during the book-building process.

Francisco said while the company could have priced the deal at P13.50 apiece, the company decided to price it at the low end of the price range to enable wider investor participation.

The offering period will begin on Oct. 26 and end on Nov. 2.  The shares will be listed on the local bourse on Nov. 10.

The share sale is expected to increase Synergy Grid’s public float to 22.12 percent, making it compliant with the minimum public ownership requirement for listed firms.

The trading of Synergy Grid shares was suspended on May 30  after its public float fell to 0.25 percent following the completion of the share swap deal in exchange for shares in OneTaipan Holdings Inc. and Pacifica21 Holdings Inc.

OneTaipan, controlled by Henry Sy Jr.,  owns controlling shares in Monte Oro Grid Resources Corp., which holds 30 percent plus one share in National Grid Corporation of the Philippines.

Pacifica21, controlled by Roberto Coyuito Jr., owns controlling shares in Calaca High Power Corp., which holds 30 percent minus one share in NGCP.

Synergy Grid is the holding company of NGCP, the sole and exclusive operator of the Philippines’ nationwide transmission network linking power generators and distribution utilities to deliver electricity to end-users across Luzon, Visayas and Mindanao.

It owns a 60-percent stake in NGCP while State Grid Corp of China holds 40 percent stake.

The net proceeds from the share sale will be used to subscribe to non-voting preferred shares to be issued by NGCP, subject to applicable laws and regulations.

BofA Securities and UBS AG Singapore Branch are the joint global coordinators and joint bookrunners for the transaction.

BDO Capital will serve as the sole domestic coordinator and will act as joint domestic lead underwriter and joint bookrunner alongside BPI Capital Corp. and PNB Capital and Investment Corp.

Prior to the trading suspension, shares of Synergy Grid were trading at P395.80 each.

Topics: Synergy Grid & Development Phils. Inc. , NGCP , share offering price
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