NexGen secures regulator nod for maiden offering
By Lorenz S. Marasigan and Lenie Lectura – June 30, 2024
from Business Mirror
NexGen Energy Corp. (XG), a wind and solar energy company, has received the green light from the Securities and Exchange Commission (SEC) to proceed with its initial public offering (IPO).
According to NexGen, the SEC granted it the permit to sell IPO shares on June 28, setting the stage for its entry into the Philippine Stock Exchange (PSE) this July.
The IPO offer period will commence on July 1 and conclude on July 8, with the tentative listing date slated for July 16. NexGen plans to offer up to 300 million common shares to the public at P1.68 per share.
Additionally, an over-allotment option allows for the sale of up to 45 million secondary common shares.
China Bank Capital Corp. is the sole issue manager, joint lead underwriter, and sole bookrunner for the offering. Investment & Capital Corp. of the Philippines also serves as a joint lead underwriter.
NexGen, a wholly owned subsidiary of Pure Energy Holdings Corp., focuses on providing wind and solar energy. Pure Energy is an investment holding company engaged in renewable energy, bulk water distribution, and septage facility services.
Among NexGen’s sister companies are Repower Energy Development Corp. and Tubig Pilipinas Group Inc., which specialize in hydropower and water distribution, respectively.
NexGen currently operates three solar farms with recurring net income and boasts a project pipeline exceeding 1.5 GW of wind and solar energy projects.
The company is also set to develop power facilities for Pure Energy’s venture into agricultural technology, particularly climate-controlled indoor farming, which is viewed as the future of agriculture. The pilot indoor farm design has been finalized, with construction expected to begin soon.
Last April, the company announced its intention to build a portfolio of over 2,350 megawatts (MW) over the next 10 years.
The power projects are mostly solar and wind, according to company president Eric Y. Roxas said. He said the cost to build solar power farms is around $750,000 per MW and around $1 million to $2 million per MW for wind.
