ACEN Corp. said its board of directors has approved the issue and sale of primary common shares by way of a stock rights offering to eligible shareholders.
The renewable energy unit of Ayala Corp. said the newly issued primary shares will be subsequently listed on the Philippine Stock Exchange.
ACEN president Eric Francia said in a briefing in Makati City on Wednesday, proceeds of the stock rights offer will finance the expansion of the company’s renewable energy projects, as well as pay down its debt.
The share sale is expected to be completed by September this year, with an indicative floor price of P2.30 per share.
Apart from the stock rights offer, the company has other sources to tap for capital raising, such as potential partners for projects overseas, Francia said.
“Of course, the cash flows that we are and will continue to be generating for these projects will fuel our growth. We also have, of course, a lot of room for our debt capacity, although we always emphasize financial strength and prudence in our balance sheet,” he emphasized.
“We will not overstretch our balance sheet. This capital infusion will allow us to do a lot of things and set ourselves towards the next five, six years,” he added.
ACEN’s current focus of expansion is in the Philippines, Australia, India and the Mekong region — specifically, Vietnam and Laos.
Earlier, the company said it would expect 1,200 megawatts (MW) of renewable energy to come on stream by the end of 2025, particularly from projects in the Philippines, Laos and India.
