Alternergy to fuel renewable energy projects with first IPO of 2023

MANILA, Philippines – Local renewable energy company Alternergy Holdings is setting its sights on completing solar, wind, and hydro energy projects in the next five years, using the P1.61 billion in capital that it raised during its recent initial public offering (IPO).

The company debuted on the Philippine Stock Exchange on Friday, March 24, as the first company to go public in 2023. It offered 1.150 billion primary shares and 115 million overallotment shares, representing 32.16% of the company’s stock, at an initial price of P1.28 per share.

Alternergy raised P1.47 billion from the primary offer shares and P147 million from the overallotment offer shares for a total of P1.61 billion.

“We have always been strong advocates for what we call the ‘green democratic capitalism’ – giving every Filipino family, every young professional, every family office, the opportunity to participate in a renewable energy IPO and own a part of a green energy company,” said Alternergy chairman and former energy secretary Vince Pérez during the listing ceremony.

Pérez said the IPO has also paved the way for other capital raising activities, such as green bonds. He hinted that green bonds could be used for future financing requirements of projects in the next three to five years.

Power project pipeline

Bolstered by the proceeds from its IPO, Alternergy will begin construction on its two shovel-ready projects in the coming months. The projects – the Solana Solar Power Project in Hermosa, Bataan, and the Lamut Run-of-River Hydro Project in Lamut, Ifugao – will receive 35% of the IPO proceeds.

Alternergy will also pursue pre-development activities for its pipeline of other developments using the capital from the IPO. These include the Ibulao Run-of-River Hydro Project, Tanay and Alabat Wind Projects, and offshore wind projects. Over the next five years, the company intends to develop up to 1,370 megawatts (MW) of wind, offshore wind, solar, and run-of-river hydro projects.

A third of the IPO proceeds will go to repaying liabilities related to the acquisition of the Kirahon Solar Farm in Misamis Oriental.

Aside from its current pipeline, Alternergy is also considering bringing lessons learned from developing its solar farm in the Pacific island nation of Palau to the Philippines.

“Because of its location, which is similar to the type of islands that we have here in the country…this project here in Palau is something that can be replicated here in the country. We will explore that opportunity as well,” Alternergy president Gerry Magbanua said during a media briefing on Friday.

Alternergy’s solar developer Solar Pacific Energy Corporation (SPEC) said its Palau project – a utility scale solar farm producing 15.2 MW of solar energy with 13 megawatt-hours of utility scale battery storage – may already start generating energy in the next few weeks.

“Because the Republic of Palau is a relatively small country, that project will generate 25% of the entire country’s energy. As you can imagine, they’re 100% dependent on diesel power at the moment,” SPEC chief executive officer and co-founder Mike Lichtenfeld said.

In transitioning away from diesel power, Pérez also said renewable energy projects like the ones developed by their company could prevent future ecological disasters, like the Oriental Mindoro oil spill.

“Look at the oil spill. What’s the cause of that? Somebody was transporting diesel from Bataan to the Panay fuel power plant. If we could just replace that power plant with clean energy, we don’t have to have this disaster in a marine environment,” said Pérez during the media briefing.