SP New Energy’s SRO is 76% fully-paid ahead of March 5 deadline

SP New Energy [SPNEC 1.50 4.5%] [link] disclosed that it has received full payment for an additional 133.4 million shares as part of its stock rights offering (SRO) that it announced in August of last year.

Buyers were given the option to either purchase the shares outright at the full price of P1.50/share, or to submit a (non-refundable) 25% downpayment and receive any SRO shares purchased upon full payment of the remaining 75% of the purchase price.

As of December 22, SPNEC still had yet to receive full payment for over 30% of the SRO shares sold during the offer period.

As of February 17, according to this disclosure, SPNEC had received payment for an additional 133.4 million SRO shares to bring its unpaid proportion down to 24%.

SPNEC recently said that its parent company, Solar Philippines Power Project Holdings (SPPPH) would purchase any of the unpaid-for SRO shares at the end of the extended payment period. SPNEC’s stock price fell 4.5% yesterday to close at P1.50/share. 
 

MB BOTTOM-LINE

The spring mini-bull market helped push SPNEC’s stock price up above P1.50/share for an extended period of time, which probably encouraged a number of SRO buyers who bought using SPNEC’s payment plan to pay the remaining 75% and complete their purchase.

This disclosure covers only up to February 17, and we know that SPNEC’s price was above P1.50/share for the 5 trading days after that, so there are likely additional buyers that have completed the transaction that are not accounted for in this figure.

Yet, do I think that this SRO has been a success?

No. I think it’s been largely a failure. Attention from buyers has been luke-warm, even after extending the deadline for payment by a number of months.

Does it matter? Not really.

Even if this SRO were fully subscribed and paid-for, the number of shares going into the public float wouldn’t be sufficient to maintain SPNEC’s minimum public ownership threshold after the share swap with SPPPH is executed.

SPNEC was always going to need to sell a bunch of shares through private placements to make that transaction work. 

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.