Renewable energy firm Alternergy files for P2.18-B IPO

MANILA, Philippines — Renewable energy firm Alternergy Holdings Corp. has announced plans to take the company public in a bid to raise cash to bankroll several projects in its pipeline.

Filing documents released by the Securities and Exchange Commission on Wednesday showed Alternergy plans to sell 1.28 billion primary shares to the public at P1.48 apiece.

If investor interest proves strong, the renewable energy holding company plans to sell 192.2 million more shares to meet the extra demand.

Including the overallotment option, the company is poised to raise P2.18 billion from its maiden share sale. Of that amount, net proceeds from the sale of primary shares amounting to P1.81 billion will be used for the construction of two renewable energy projects, shares acquisition, and pre-development expenses of projects in its pipeline.

Much like any company looking to go public these days, Alternergy will discover a market weathering intense investor aversion as bleak economic conditions at home and abroad stoke panic on trading floors. In the past months, some companies have deferred their fundraising plans, including initial public offerings.

Alternergy is looking to make waves in the renewables sector in a country struggling to find solid ground as it transitions to depend on more sustainable forms of energy.

The company was one of the first recipients of national government contracts for wind power, which include rights to develop Pililla in Rizal. Outside the country, Alternergy is developing a solar photovoltaic and battery energy storage hybrid project in Palau, which its documents touted as the largest of its kind in the western Pacific.

Three of the company's founding partners were involved in the development of the wind farm in Bangui located in Ilocos Norte.

The company was founded shortly after the Bangui wind farm was completed. One of its partners includes Arroyo-era energy minister Vicente Perez.

Based on timeline it submitted to the SEC, Alternergy’s IPO is set on November 11 to 17. The company plans to debut on the Philippine Stock Exchange on November 25.