NexGen IPO fails to hit P580 million mark

MANILA, Philippines — The initial public offering (IPO) of NexGen Energy Corp. has failed to hit its total potential deal size of P580 million.

The STAR learned that the company’s IPO was “oversubscribed but not for the full over-allotment.”

A source indicated that the base offer was fully taken up and the offer had excess orders for partial exercise of the over-allotment option.

NexGen’s offer period commenced on July 1 and ended on July 8.

The company offered a total of 300 million common shares as its primary offering, with an over-allotment option of up to 45 million secondary common shares at P1.68 apiece.

NexGen’s estimated amount to be raised from the sale of shares was at P504 million and an additional P75.6 million from the sale of option shares.

The company’s common shares will be listed on the Philippine Stock Exchange on July 16.

NexGen is the country’s third IPO this year, following the successful market debuts of OceanaGold Philippines Inc. and Citicore Renewable Energy Corp.

The company intends to use the net proceeds from the offer to partially fund the equity portion of the Zambales 2 solar project, Silang Maragondon wind project and the Asisan wind project.

It will likewise be utilized to fund the development or acquisition of renewable energy projects, development of the power facilities for a climate controlled indoor farm as well as operating and working capital requirements.

NexGen currently owns and operates three solar farms with recurring net income and has a pipeline totaling over 1.5 gigawatts of wind and solar projects.