AC Energy gets SEC approval for P16.4 B follow-on offering

The Securities and Exchange Commission (SEC) has approved the P16.48 billion follow-on offering of AC Energy Corp., the listed power arm of conglomerate Ayala Corp.

AC Energy plans to commence the share sale on May 3 and list the shares on the Philippine Stock Exchange (PSE) on May 14, based on its latest submissions to the SEC.

Proceeds from the offer will be used to refinance existing loans and fund the company’s growth as it transitions to a post COVID-19 era and expands its energy portfolio.

In its registration statement, AC Energy said it would use the net proceeds from the primary offer, estimated at P12.64 billion, to partially fund the development of power projects, inorganic growth opportunities, repayment of loans and reduction of payables, as well as other general corporate requirements.

AC Enery’s registration statement covers 1.6 billion shares, which shall comprise the primary offer priced at between P6 and P8.20 per share, as well as 330.248 million shares as part of the secondary offer.

An overallotment option consisting of up to 100 million common shares will be made available should demand call for it.

At the maximum price, AC Energy and the selling shareholders may net P16.08 billion from the offer, assuming the oversubscription option is fully exercised.

The company tapped BPI Capital Corp. as the sole global coordinator, underwriter, and joint bookrunner for the offer. CLSA and UBS will serve as international joint bookrunners, as well as joint bookrunners alongside BPI Capital.

The company aims to be the largest listed renewables platform in Southeast Asia, with a goal of reaching 5GW of renewables capacity by 2025.

In 2019, AC Energy’s power portfolio registered an attributable capacity of over 1.8 GW in operation and under construction, spanning projects in the Philippines, Indonesia and Vietnam.