MANILA, Philippines – After delays in its capital fund raising efforts, the power and energy arm of diversifying conglomerate San Miguel Corp. will pursue its initial public offering in 2012, its top executive said.
“We will push through with the IPO. It’s about timing and depending on the opportunity,” Ramon S. Ang, San Miguel Corp. president and chief operating officer, told reporters in Filipino.
SMC Global Power Holdings Corp.’s maiden share sale was originally scheduled in the last quarter of 2011
At P71 per share, it was supposed to be the biggest IPO in the country with expected proceeds of up to P36.9 billion, eclipsing SM Investments Corp.’s P28.8 billion in 2005 and Cebu Pacific Air’s P23.3 billion in October 2010.
Adverse market conditions prompted the group to postpone.
Net proceeds from SMC Global Power’s IPO has since been downsized to P19.20 billion. It said it will partially finance its aggregate capital expenditure for the development of four greenfield projects worth P90.4 billion.
The company said it will allot up to P13.50 billion until 2015 for two 150-megawatt power plants in Ternate, Cavite and a 150-megawatt power facility in Northern Leyte. Both will be operational in the first quarter of 2015.
The remaining P5.70 billion that will be spent until 2016 will be earmarked for the Bulacan and Davao projects, acquisition of other power generation projects such as the Naga Power Plant Complex and the Unified Leyte Geothermal Power Plant, as well as for general corporate purposes.
San Miguel will sell its shares in the SMC Global Power, diluting its ownership to 67% if even the green shoe and upsize options are fully exercised. – Rappler.com