ATN Solar plans to go public
BY LENIE LECTURA – MARCH 9, 2022
from Business Mirror
ATN Philippines Solar Energy Group, Inc. (ATN Solar), the energy arm of publicly listed ATN Holdings, Inc., has sought board approval for the conduct of an initial public offering (IPO).
“The Executive Committee has recommended the IPO against LBWI (Listing By-Way of Introduction) in listing ATN Solar shares in the Philippine Stock Exchange,” the publicly-listed real estate developer told the exchange on Wednesday.
It said that IPO would be viable given the supplemental listing rules granted to renewable energy firms with the exemption of the three-year positive financial performance. Moreover, the IPO route would have a shorter timeline needed to fund its planned 100megawatt (MW) solar power projects compared to LBWI, which requires a two-step process—LBWI and follow-on offering.
“The Corporation approves ATN Solar’s plan for IPO application in the Philippine Stock Exchange, associated cost of the application based on the above-mentioned budget, and appointment of an investment banking group and underwriter for the above purpose, subject to compliance to all rules and regulations of the relevant regulatory agencies,” it said.
ATN Solar’s book value is currently pegged at P0.90 per share. It plans to list the shares at P2 to P2.50 apiece, depending on market conditions during the offer period.
“Public listing of ATN Solar shares may create additional liquidity and prospective value for shareholders of ATN Holdings and Transpacific Broadband Group International Inc.,” it added.
The power firm’s plan to enter into a joint venture (JV) agreement with foreign partners for a solar power project in Montalban, Rizal for own-use electricity supply and powering mining trucks was also approved.
“ATN Solar plans to partner in a JV with a Singaporean based solar project EPC (engineering, procurement, construction) for the installation of modular 1.4MW solar PV plant in the ATNH quarry site to supply power to the 500 TPG rock crusher plant and ancillaries under an arms-length own use arrangement,” it said.
From 1.4MWm, the capacity of the planned solar farm could be expanded to 7MW. The initial 1.4MW capacity shall be funded with a debt ratio of 70 percent, with direct equity contributions from ATN Holdings and Transpacific Broadband, together with EPC partner.
The planned solar power project is expected to reduce its energy cost at P2.5 per kilowatt hour (kWh) compared to an estimated P14 per kWh under new normal conditions.
