Synergy Grid & Development Phils. Inc. on Wednesday listed its shares from its follow-on offering at the Philippine Stock Exchange.
Synergy set the price of over billion primary common shares, with an over-allotment option for another 101 million secondary shares at P12 apiece. The offering enabled the company to raise P13.85 billion from the sale of 1.15 billion shares, including the over-allotment option.
“Synergy Grid is very excited to be doing this follow-on offering on the Philippine Stock Exchange. As the indirect controlling shareholder of NGCP, this milestone marks SGP’s dedication and commitment to fulfill NGCP’s mandate as the sole power transmission service provider in the Philippines,” said Synergy president Paul Sagayo during the bell-ringing ceremony at the trading floor. Also present was PSE president and chief executive Ramon Monzon.
Synergy chairman Henry Sy Jr. and vice-chairman Robert Coyiuto Jr. also participated in the event online, together with other executives from PSE, National Grid Corporation of the Philippines and other partner institutions instrumental in the listing.
As a result of the FOO, the public ownership percentage of Synergy reached 22.13 percent, in compliance with the minimum public ownership rule of the PSE.
The company said it would use the proceeds of the FOO to directly subscribe to non-voting preferred shares that would be issued by NGC, the sole and exclusive operator of the Philippines’ transmission network, linking power generators and distribution utilities to deliver electricity to end-users nationwide.
Proceeds from the issuance of the non-voting preferred shares will be used by NGCP to finance capital expenditure and related cost and expenses.
NGCP is committed to invest P440 billion over the next 13 years across 211 projects to support the growing electricity demand and make the country’s power backbone continuously reliable.
NGCP holds a 25-year concession and a 50-year Congressional franchise to expand and operate the country’s power transmission grid.
Synergy indirectly controls 60 percent of the outstanding capital stock of NGCP, the company’s sole operating asset with an effective equity interest of 40.2 percent.
Synergy’s shares opened at P13 per share and closed at P12.60 per share Wednesday, up 5 percent from its FOO price of P12 apiece.