MANILA, Philippines — MRC Allied Inc. is pursuing a P1-billion share sale to support its expansion into the power sector.
In a disclosure to the Philippine Stock Exchange, MRC Allied said its board amended the terms of the planned private placement.
The company has reduced the amount of shares to be sold through a private placement but raised the price of the share sale.
The MRC board nearly halved the amount of shares from 2.56 billion common shares to 1.43 billion common shares from the unissued and unsubscribed authorized capital stock.
The company’s board also approved a higher issue price of P0.70 per share from the previous P0.39 price.
The board said the private placement will also call for a downpayment of 50 percent of the issue price upon signing of the term sheet, with the 50 percent balance payable within 30 days from downpayment.
The share sale was first announced in mid-2017 to bankroll the company’s plans to develop renewable energy projects as it shifts focus to the power sector.
MRC Allied is originally a real estate company with a diverse portfolio in property and mining.
Initially, the company set its aspirational target capacity to 1,000 megawatts (MW) by 2022.
Last year, the firm was able to exceed its target capacity of 200 MW of clean energy.
MRC Allied raised its target to 10,000 MW by 2027 as it positions itself aggressively in the power sector this year.
It positions itself agrresively in the power sector in 2018 as it pursues 10,000 MW of clean and renewable energy projects in 10 years.
The company earlier said this would entail an investment of about P80 billion to P100 billion depending on the technology or resource.
To further help meet its 10-year target capacity, the company will also explore opportunities in the liquefied natural gas (LNG) sector, off-grid areas and microgrid sector.