SPNEC wants to resume trading

By VG Cabuag @villygc

SP New Energy Corp. (SPNEC), whose shares have been suspended for trading at the Philippine Stock Exchange (PSE), is hoping that it can resume trading “as soon as possible” even prior to the increase of its public float.

Leandro Antonio L. Leviste, Solar Philippines founder and SPNEC chairman, president and CEO, said the company is working on increasing its public float, which fell below the minimum requirement of 20 percent for newlyregistered firms. Its public float stood at 13 percent after the Securities and Exchange Commission (SEC) approved the increase in its authorized capital stock (ACS) to P5 billion, divided into 50 billion common shares, from the previous P1 billion.

“The SEC’s approval of our ACS increase actually came earlier than we expected. So we’re very thankful to the SEC, but unfortunately, that inadvertently also resulted in the trading suspension,” Leviste said.

“Of course, the SEC has not caused that. We should have kept the float above 20 percent.”

“We are working to increase our public float as soon as possible. And we are hopeful that we can resume trading even prior to achieving that increase.”

He said a large food and beverage company allowed to trade even if its shares fell below the minimum public float rule as it was undergoing consolidation in 2018.

The best and fastest possible option to increase its public float is through private placement to sell some 2.12 billion shares, if the 1.6 billion shares being bought by Metro Pacific Investments Corp. (MPIC) will not count.

He said the company has buyers for that amount of shares, which will cost about P3.09 billion at its last close of P1.46 per share on June 2.

“Yes, we just need to finalize the arrangements with these identified buyers for the 2.12 billion shares, and then execute with the corresponding documentation, those share sales so that we can get back up over 20 percent.”

MPIC acquired an initial 16 percent in listed solar power company SPNEC worth P2 billion in March.

It was given an option to acquire up to a 43-percent stake in the company and become SPNEC’s biggest shareholder once the solar power firm raises its authorized capital stock to P50 billion from the current P10 billion.

The initial transaction involves a signing of a definitive agreement between the MPIC for the acquisition of 1.6 billion common shares from SPNEC’s parent, Solar Philippines Power Project Holdings Inc.