ANALYSTS see the stock rights ofering of Solar Philippines Nueva Ecija Corp. to be more appealing to long-term investors as they expect its business to grow in the long run amid favorable government support for green energy projects.
“SPNEC is on track to complete its major deals this year, including its [SRO] within the next few weeks and its asset-for-share swap with parent Solar Philippines [Power Project Holdings, Inc. or SPPPHI] by the end of 2022,” Mr. Arce said in a Viber message. “While this SRO may not be appealing for short-term players as they stay on the sidelines, those players who’ll participate are probably banking on the bright prospects that this project may yield for SPNEC’s bottom-line figures in the future,” Mr. Lood noted.cer Leandro Antonio L. Leviste said the SRO’s P2.8-billion proceeds “will help complete the P10 billion that we plan to invest to complete the development of 10 gigawatts of projects.
SPNEC placed the industry standard cost of putting up a megawatt of solar power at $700,000, which can translate into revenues of P6 billion per MW per year. It added that its 10 GW of projects would have a total non-land capital expenditure budget of $7 billion, or revenues of P60 billion per year.
SPPPHI and SPNEC have signed the share-swap agreement for the issuance of around 24.37 billion shares at P2.50 apiece, in exchange for the shares of SPPPHI in a portfolio of projects.