THE National Grid Corporation of the Philippines (NGCP) said it will pursue its initial public offering (IPO) when market conditions are more conducive.
Cynthia Alabanza, NGCP spokesperson, said in a statement the company is not avoiding an IPO but “merely asked for a deferment of the offering to a more favorable time given the prevailing circumstances at the time of the petition.”
NGCP’s comments came after the Energy Regulatory Commission (ERC) denied the company’s request to postpone the IPO in a decision dated March 3, 2020 but was promulgated on April 17, 2020.
NGCP said it conducts its business in full compliance with all applicable laws, rules and regulations.
“We fully respect the decision and jurisdiction of the ERC over the matter, and we intend to reply appropriately,” Alabanza said.
Republic Act 9511 which granted the NGCP its franchise requires it make a public offering of the shares representing at least 20 percent of its outstanding capital stock or higher within 10 years from its commencement of operations in January 2009.
The company had planned a backdoor listing of its shares as far back as 2010 involving at least 30 percent of NGCP’s outstanding shares of stock.
This did not push through following an adverse ruling by the Bureau of Internal Revenue on the tax-free status of the transaction.
In 2014, NGCP renewed plans for public listing but market conditions were not favorable at that time.
