Business

Synergy Grid raises P13.85 billion from FOO

Synergy Grid raises P13.85 billion from FOO

MANILA, Philippines — Synergy Grid and Development Philippines Inc. (SGP), the listed holding company of Henry Sy Jr. and Robert Coyiuto Jr., successfully raised P13.85 billion from a follow-on offering (FOO) of shares, moving the company closer to fulfilling its vision of building the strongest power grid in Southeast Asia.

SGP president and CEO Paul Sagayo said the FOO is a major step in continuing the company’s commitment of fulfilling the mandate of the National Grid Corp. of the Philippines (NGCP), the country’s sole transmission highway operator.

SGP is an indirect controlling shareholder of NGCP.

“Through this follow-on offering, we are able to share with you our vision of building the strongest power grid in Southeast Asia. Moreover, this undertaking allows you to participate in our mission to contribute to this nation’s social and economic development,” Sagayo said.

Under the leadership of Sy and Coyiuto, SGP aims to continue fulfilling its mandate of providing quality service to Filipinos by continuously investing to expand and improve NGCP, Sagayo said.

“Moving forward, demand in electricity is only expected to keep growing, thereby fueling the expansion of the Philippine power market, and at the forefront of this expansion is Synergy Grid,” Sayago said. “Synergy is constantly improving, constantly investing to improve the power grid.”

PSE president Ramon Monzon lauded the company’s move of allocating five percent of its FOO for local, small investors.

“Thank you for helping PSE to attract, promote and widen investor participation in the stock market,” Monzon said.

He said the strong investor participation is a testament to confidence in the company and investors’ desire to participate in the ownership of NGCP.

SGP’s FOO comprised 1.15 billion shares including an over-allotment option, priced at P12 per common share, for total proceeds of P13.85 billion.

SGP reached a high of P13.58 yesterday before closing at P12.60 per share, above the FOO price.

The company will use the proceeds of the FOO to directly subscribe to non-voting preferred shares that will be issued by NGCP.

Proceeds from the issuance of the non-voting preferred shares will be used by NGCP to finance its capital expenditure requirements and related cost and expenses.

In the next 13 years, NGCP is committed to invest approximately P440 billion across 211 projects which are aimed to support the growing electricity demand in the country and to make the country’s power backbone continuously reliable.

BDO Capital & Investment Corp. president Ed Francisco the results were very positive and reflected investors’ support to SGP.

“Investors continue to support SGP as reflected by the orders and the increased trading price,” Francisco said.

NGCP holds a 25-year concession and a 50-year Congressional franchise to expand and operate the country’s power transmission grid.