Pacerm-1 share sale gets SEC nod

By VG Cabuag – August 30, 2023
from Business Mirror

Pacerm-1 Energy Corp., an operator of a power plant in Mindanao, is raising P15.89 million by issuing shares to the public, according to documents it submitted to the Securities and Exchange Commission (SEC).

In its en banc meeting, the SEC approved the registration statement of Pacerm-1 covering 250,000 common shares.

The company is offering for sale 26,891 common shares at P2,100 apiece to comply with the ownership requirement of the Electric Power Industry Reform Act (RA9136).

The offering is being made in compliance with an order by the Energy Regulatory Commission to offer not less than 15 percent of its outstanding capital stock to the public.

The SEC said it has approved Pacerm-1’s application for a direct public offer which will enable the company to sell its shares without tapping the assistance of financial intermediaries like investment banks.

“The company expects proceeds to amount to P15.89 million, which will be used for the payment of its long-term loans,” the SEC said.

The share sale will run from September 1 to November 30, based on the latest timetable the company submitted to the SEC.

Section 14(t) of RA9136, also known as Electric Power Industry Reform Act, requires power generation companies and distribution utilities that are not publicly listed to offer and sell to the public at least 15 percent of their common shares of stocks.

Last week, the ERC said 51 percent of generation companies, or 118 of 143, have not yet complied with the requirement, prompting the agency to lobby lawmakers for a suspension of the provision under the law for generation companies that are into renewable energy.

Of the 118 entities, 65 are into renewable energy, of which 24 are small renewable energy companies.

Pacerm-1 operates a diesel power plant in El Salvador, Misamis Oriental with a total capacity of 10.5 megawatts.