Tarlac Electric Inc., a power distribution utility firm serving the requirements of Tarlac City, is raising up to P603.7 million from an initial public offering.
TEI said in a filing with the Securities and Exchange Commission it would sell 1.75 million primary shares at a price of P345 apiece.
It said the public offering was pursuant to Republic Act No. 10795, or TEI’s Franchise, which requires the company to publicly offer 30 percent of its outstanding capital stock to Filipino citizens on or before the fifith year of operations.
The company hired Penta Capital & Investments Corp. as the sole underwriter for the offering. Net proceeds from the offering will be used to fund expansion projects, retire short-term obligations and finance working capital.
The company is constructing a three-story headquarters and is building various network projects including the rehabilitation and upgrading of its 69kV line from National Grid Corporation of the Philippines Concepcion which has already been approved by the Energy Regulatory Commission.