NexGen: Proceeds of IPO to bankroll expansion plan
By VG Cabuag – July 17, 2024
from Business Mirror
The share price of NexGen Energy Corp., a renewable energy company with a basket of solar and wind service contracts, made little gains during its debut at the Philippine Stock Exchange (PSE).
Traded under the ticker sign XG, NexGen shares were up by 3 centavos to close at P1.71 apiece from its offer price of P1.68, up by a mere 1.7 percent. It opened strong at P1.76 apiece and rose as high as P1.84 before succumbing to profit-taking.
The company raised some P504 million in gross proceeds from its initial public offering (IPO).
“This IPO serves as a timely reminder to other small companies that need to raise capital that the SME Board is a very practical and feasible listing route,” said Ramon S. Monzon, PSE president and CEO.
“This market debut may just be the beginning of even more exciting things to come for XG, whose goal is to scale its assets to contribute to the growth of the wind and solar industry and address the challenges of climate change by supplying clean and sustainable energy.”
The company operates through its subsidiaries—SPARC-Solar Powered Agri-rural Communities Corp., 5hour Peak Energy Corp. and Airstream Renewables Corp. These companies currently produce only 13.86 megawatts of capacity.
Funds raised from this IPO will be used by the company to carry out its growth plans. Around half of the proceeds will be used for the construction and development of the company’s solar project in Zambales and wind projects in Cavite.
The company is also allocating capital to develop and acquire renewable energy projects. The IPO will enable XG to increase its total capacity to 38.86 megawatts by the end of 2026.
“We look forward to seeing the timely and proper implementation of its pipeline projects, which will surely boost the prospects and the standing of XG in the renewable energy space. For sure, market watchers are watching how XG will fare compared to the other listed renewable energy companies,” Monzon said.
“The IPO will be a key milestone in XG’s history, given it would provide much-appreciated financing to fulfill our expansion plans, and our investors will be key to us to succeed in our objectives,” Eric Peter Y. Roxas, the company’s president and CEO, said.
