First Gen defers IPO plan anew

First Generation Holdings Corp. (First Gen), a wholly-owned subsidiary of publicly-listed First Philippine Holdings Corp. (FPHC), owned by the Lopezes, has decided to defer anew plans to undertake an initial public offering (IPO) this year.

"This year would be very difficult, I guess. I think by next year we will revisit our (IPO) plan," First Gen president Peter Garrucho said in a press conference.

Garrucho acknowledged that there have been some improvements in the performance of the local stock market. But there are a lot of other factors that should be considered before proceeding with the IPO, he pointed out.

"I think the main driver this time is the buoyancy of the market," he said.

He said since they are interested to participate in the bidding of the generation assets of the National Power Corp. (Napocor) in the latter part of the year, it will be better to wait until they have been able to accomplish this goal.

"There would be some excitement that the privatization process will bring about. If you win it or after you’ve won a project, I guess it’s easier for people to analyze your intentions. It’s a lot of excitement to bid for something," he said.

First Gen is focusing its attention on the 400-MW oil-based Sucat power plant of Napocor which it intends to convert into a natural gas-fired power facility.

First Gen is planning to offer 10 percent to the public through an IPO.

With First Gen currently valued at $500 million, the planned offering is worth about $50 million or P2.5 billion. First Gen controls the First Gas Power Corp. (FGPC), a joint venture between FPHC and British Gas. FGPC, on the other hand, operates 1,000-MW Santa Rita and 500-MW San Lorenzo plants.

Santa Rita and San Lorenzo plants will take up the natural gas to be produced by Shell Philippines Exploration B.V.’s Malampaya field. Santa Rita started commercial operations last year while San Lorenzo will go on commercial operations in April this year, a month ahead of target.

FGHC also operates the 225-MW Bauang diesel-fired plant and the 72-MW diesel-fired Panay plant through its wholly-owned subsidiary First Private Power Corp. (FPPC).