AYALA-LED energy company ACEN Corp. said it plans to raise up to P30 billion through a stock rights offering (SRO) to pay off debt and fund its renewable energy (RE) projects.
The indicative price of the SRO is a minimum of P2.30 per share, ACEN said in a regulatory filing on Wednesday. The planned issuance secured board approval on the same day.
“The expectation is we would like to get it done by September,” ACEN Chief Financial Officer and Chief Strategy Officer Jonathan Back said during a media briefing in Makati City.
“It is to support the continued expansion of our renewable projects. And then, for flexibility, we also put down some use of proceeds, which is potentially also to pay down debt,” ACEN President and Chief Executive Officer Eric T. Francia said separately.
The primary common shares for the SRO will come from ACEN’s current unissued common shares and an increase in authorized capital stock. ACEN secured stockholders’ approval on Wednesday to increase its authorized capital stock by P10 billion to P58.4 billion.
“The increase in authorized capital stock was to allow fresh equity raising, an SRO of up to P30 billion,” Mr. Francia said.
The energy company said its principal shareholders, AC Energy and Infrastructure Corp. and Arran Investment Pte Ltd., have both indicated support for the SRO and plan to subscribe to their pro-rata shares, subject to the final terms of the issuance.
ACEN Chairman Cezar P. Consing said during the company’s annual stockholders’ meeting that there is momentum in key markets such as the Philippines, Australia, and India.
“We have 1.2 gigawatts of renewable energy projects with signed agreements expected to reach financial close within the next 12 to 18 months,” Mr. Consing said.
“While the global renewable energy sector has faced headwinds, including the prospect of elevated interest rates and shifting energy policies — particularly in the United States — we believe the sector’s long-term fundamentals remain intact,” he added.
For 2024, ACEN Corp. posted a 27% growth in attributable net income to P9.36 billion, as revenue increased by 2.2% to P37.3 billion, led by higher generation output.
Meanwhile, ENEX Energy Corp. Chairman Gerardo C. Ablaza, Jr. said in a separate annual stockholders’ meeting that the company’s planned 1,100-megawatt combined-cycle gas turbine project in Batangas is awaiting the launch of a competitive selection process.
The project is being undertaken by Batangas Clean Energy Inc., a joint venture between ENEX and Gen X Energy LLC.
“The project is awaiting the launch of a competitive selection process in order to secure a long-term offtake agreement — a key step toward construction and development,” he said.
ENEX is a unit of ACEN that explores for crude oil and natural gas.
On Wednesday, ACEN shares fell by 7.86% or 22 centavos to P2.58 apiece, while ENEX shares improved by 2.63% or 10 centavos to P3.90 each. — Revin Mikhael D. Ochave
