First Gen likely to list at stock exchange in December

First Generation Holdings Corp., the holding company of the Lopez family’s power and energy-related businesses, is likely to list at the stock market in December this year, Philippine Stock Exchange (PSE) president Francis Lim said.

Lim said First Gen is in the process of completing the requirements for its planned initial public offering (IPO) and that some legal issues are now being threshed out.

First Gen is eyeing to raise around P11.22 billion from the maiden offering of its shares.

In a registration statement filed with the Securities and Exchange Commission, First Gen said it will offer a minimum of 151.57 million shares priced at P74 per share up to a maximum of 219.93 million shares at P51 per share. The shares will be sold in both the local and international markets.

Tapped as global coordinator and bookrunner for the issue is Credit Lyonnaise SA while BDO Capital & Investment Corp. and ATR Kim Eng Capital will serve as lead managers for the domestic offer.

The book value of the company, based on its unaudited financial statements as of June 30, 2005 was P13.52 billion or P29.90 per share. The book value represents the amount of the company’s total assets less the sum of its liabilities less the equity of the outstanding value per share.

Proceeds from the offering will be used for improvements in existing facilities, investments in capacity expansion, which may include both potential acquisitions of power generation facilities and the development of greenfield projects as well as for general corporate purposes, including working capital and investments.

Once listed, First Gen will be the fifth company owned or controlled by the Lopez family that will be traded on the exchange next to power utility giant Manila Electric Co. (Meralco), ABS-CBN Broadcasting Corp., Benpres Holdings Corp. and First Philippine Holdings Corp. (FPHC).

First Gen has set aside $12.7 million for its capital expenditures this year and next year, $10.7 million of which is planned for 2005.

During the first six months of the year, First Gen already spent P86 million on the acquisition of the Agusan mini-hydro plant.

First Gen will put up a new 550-megawatt combined cycle, gas-fired plant on the land adjacent to its Sta. Rita and San Lorenzo plants.

As opportunities arise, the company intends to expand into businesses that complement its power generation operations, as well as seek to leverage its relationship with the Lopez Group. In particular, its plans include the development of downstream natural gas transmission and distribution facilities and the development of fuel-related services which may include liquefied natural gas import terminals, fuel tanker chartering and oil pipeline management.

First Gen is 88.44 percent owned by First Philippine Holdings Corp. The balance is held by AIDEC FG Power Corp.(7.75 percent), a $400 million investment fund focused on Asian private sector infrastructure projects; and Sumitomo Corp. (3.81 percent), one of the largest trading conglomerates in Japan.

First Gen controls some 1,725 megawatts of installed capacity and is one of the largest independent power generation companies in the country.

For the first half this year, First Gen reported a net income of P2.46 million on revenues of P21.81 billion.

Last year, First Gen posted a net income of P4.96 billion, 6.94 percent lower than the previous year’s P5.33 billion. Revenues, on the other hand, rose to P37.04 billion from P36.43 billion in 2003.