SPNEC, a corporation listed on the stock exchange, actively pursues various private placements and explores the potential of a follow-on offering to enhance its public float.
Leandro Leviste, the founder and president of SPNEC, reveals that private placements have already concluded, and further preparations are underway to ensure the public float exceeds 20 percent. Currently, the necessary arrangements are being finalized.
Leviste expresses optimism regarding the potential resumption of trading for SPNEC, even before meeting the minimum requirement for public ownership.
After the public float of SPNEC fell below the required 20 percent, the Philippine Stock Exchange (PSE) imposed a suspension on trading for the company last week.
SPNEC discloses that the Securities and Exchange Commission has granted approval to increase its authorized capital stock (ACS) from P1 billion to P5 billion in common shares. Consequently, the company’s public float has fallen below the mandated minimum of 20 percent.
Leviste confirms ongoing discussions between SPNEC and interested investors who seek to acquire 2.12 billion shares through a private placement. The estimated value of this transaction amounts to P3.09 billion.
READ: SPNEC: Will the Suspended Solar Company See the Light of Day?
Leviste adds that finalizing the arrangements with the identified buyers is necessary.
As per the Amended Rule on Minimum Public Ownership (MPO) of the PSE, listed companies failing to meet the minimum public ownership requirement will face a suspension of trading for a maximum period of six months. If noncompliance with the MPO persists after the suspension period, automatic delisting follows.
Leviste maintains hope that the trading suspension will be lifted, given SPNEC’s active efforts to increase its public float.
Leviste states that they have been working on selling additional shares in preparation for the increase in authorized capital stock, ensuring compliance with the 20 percent MPO. Progress is being made, with the expectation that the authorized capital stock increase will occur at a later stage.
In May, an announcement was made by Metro Pacific Investment Corp. (MPIC) regarding its acquisition of up to 43 percent of SPNEC for P24 billion.
Definitive agreements have been signed among MPIC, Solar Philippines Power Project Holdings Inc., and SPNEC, providing MPIC or its affiliates with the option to invest a total of P24 billion for 19 billion shares in SPNEC. This strategic move establishes MPIC as the largest stakeholder in the solar company, holding a 43 percent interest.
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