SPNEC plans to raise public float

MANILA, Philippines — Listed SP New Energy Corp. (SPNEC) is working to increase its public float by engaging in multiple private placements and also exploring the possibility of conducting a follow-on offering.

“We have already done private placements and we have for a while now been preparing to do the next private placements and can now say that we are finalizing the arrangements that will get our public float back to above 20 percent,” SPNEC founder and president Leandro Leviste.

With all these in place, Leviste is optimistic SPNEC can resume trading even before meeting the minimum public requirement.

Last week, the Philippine Stock Exchange (PSE) slapped a trading suspension on SPNEC after the firm’s public float dropped below the required 20 percent.

SPNEC disclosed that the Securities and Exchange Commission had approved an increase of its authorized capital stock (ACS) to P5 billion common shares from P1 billion and as a result, the company’s public float fell below the prescribed minimum percentage of 20 percent.

Leviste said that SPEC is currently engaged in discussions with investors who have expressed interest in acquiring 2.12 billion shares through a private placement. This potential transaction holds an estimated value of P3.09 billion.

“We just need to finalize the arrangements with these identified buyers,” Leviste said.

Under the PSE’s Amended Rule on Minimum Public Ownership (MPO), listed companies whose public ownership falls below the prescribed minimum percentage shall be suspended from trading for a period of not more than six months and shall be automatically delisted if it remains noncompliant with the MPO after the lapse of the suspension period.

Leviste hopes that since the company is already working on increasing its public float, its trading suspension would be lifted.

“When we sold shares to one of our large shareholders, we have been working to sell additional shares in preparation for the ACS increase so that we remain above 20 percent MPO. We are working on that on the expectation that the ACS increase comes later than that,” Leviste said.

Last May, Metro Pacific Investment Corp. (MPIC) announced its acquisition of up to 43 percent of SPNEC for P24 billion.

MPIC, Solar Philippines Power Project Holdings Inc. and SPNEC have signed definitive agreements granting MPIC or its affiliates the option to invest up to a total of P24 billion for 19 billion shares in SPNEC which will make MPIC the largest shareholder in the solar company with a 43 percent stake.