Private transmission firm National Grid Corporation of the Philippines (NGCP) is ‘on track’ with its planned US$1.0 billion initial public offering (IPO) and is targeted to be concluded in six months, based on a mandate from the power industry regulator.
“Right now, we’re on track with our planned activities and in accordance with the ruling that was handed by the ERC (Energy Regulatory Commission). We will comply and we will be giving them monthly updates and we are mindful of the six-month deadline,” NGCP Spokesperson Atty. Cynthia P. Alabanza told reporters in a virtual briefing.
She added “it’s something that we’ve been working on pre-pandemic, so this is not something that we started when we got the ERC order… this is something that we’ve been preparing for because it is part of our franchise and it’s an obligation – that is clear to us.”
Alabanza further noted that the company is certainly not starting from scratch on its targeted stock offering, as she emphasized “we have been working on this for quite a while.”
According to documents submitted to the ERC, the transmission firm has tapped Standard Chartered Bank (Philippine Branch) and BDO Capital and Investment Corporation as its international and domestic financial advisors for the stocks listing.
It was similarly stated in the ERC ruling that NGCP will be filing application for approval of its registration statement (RS) with the Securities and Exchange Commission (SEC) and also its application for listing with the Philippine Stock Exchange (PSE) by June this year.
“Approvals from the two agencies are expected to be issued towards the end of August 2021,” the power industry regulator said.
In a decision promulgated on May 14 this year, the ERC has directed NGCP “to complete its compliance with the initial public offering requirements, until the successful listing thereof, within six months from receipt of (the) order.”
As prescribed under Republic Act 9511 or the NGCP franchise, the transmission firm is mandated to undertake “public offering of the shares representing at least 20-percent of its outstanding capital stock or a higher percentage,” as allowed under relevant laws.
The IPO should have been carried out within 10 years of the company’s operations as transmission service provider of the country’s restructured electricity sector, but there is also a provision for extension upon the approval of the ERC. NGCP took over the operations of the country’s power transmission system in 2009.
The law specified that “in case compliance with this requirement is not reached, the ERC may, upon application of the grantee, and after notice and hearing, allow such reasonable extension of the period within which the grantee should list its shares of stock, if the market condition is not suitable for such listing.”
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