SPC is the second issue to be listed at the Philippine Stock Exchange this year, following Citystate Savings Bank last January. Placed on the first board as a big-capital stock, SPC is also the first power generation company to be listed since the implementation of the Electric Power Industry Reform Act of 2001.
The Cebu-based unit of Singapore industrial giant Salcon Ltd., SPC’s listing will pave the way for similar initial public offerings (IPOs) of other big energy firms among them Mirant Phils., Shell and Caltex.
At the close of yesterday’s trading, SPC shares ended eight centavos higher at P1.88 from its IPO price of P1.80. During intra-day trading, the share price never went below the P1.80 IPO price and went as high as P1.90.
Almost P300-million worth SPC shares changed hands, accounting for 44 percent of aggregate deals – the single most active stock yesterday.
SPC listed over 1.569 million common shares out of which 313.9 million sold through the IPO. The company will use the proceeds, estimated P482 million to P626 million, to partially finance its equity requirement for a diesel project called Eight Islands.
The project involves the establishment of 50 megawatt (MW) power plants in eight islands – Palawan, Masbate, Marinduque, Catanduanes, Sulu, Cebu, Romblon, and Tawi-Tawi – under a build-own-and operate (BOO) scheme.
SPC was formed in 1994 by a consortium made up of Salcon Philippines, Black & Veatch Power Development, Shanghai Nan Shi Power Plant and ATC Engineering Sdn Bhd, after the award by the National Power Corp. of a 15-year contract for the rehabilitation, operation, maintenance and management (ROMM) of the 203.8-MW Naga power plant complex in Cebu. The facility forms part of the Visayas grid that services the demand of the entire Visayas region.
From this initial investment, SPC has ventured into other power generation and distribution projects such as alternative power (solar technology and wind-diesel). It has also taken up a 20-percent stake in First Consolidated Bank, a thrift bank in Bohol.