SP New Energy Corp., a listed renewable energy company founded by Leandro Leviste, said Friday it will seek regulatory approvals for its plan to raise public ownership to at least the minimum 20 percent required of companies listed on the Philippine Stock Exchange, and avoid delisting from the bourse.
SP New Energy confirmed news “it is in talks with various stakeholders, advisers, and potential investors to increase its public float” that has fallen below the minimum requirement, forcing the PSE to suspend trading on the company’s stocks.
It added it is also “preparing to submit a disclosure with further information on its plan of acton to resume trading, including requesting for a temporary minimum public ownership exemption, in consideration of the actions that it is taking to increase its public float.”
Newspaper reports quoting SP New Energy chairman Leviste said the company has identified potential buyers for at least 2.12 billion common shares via a private placement. The sale would raise P3.1 billion for the company and raise public ownership to 20 percent.
In order to facilitate the private placement, the company will request for the temporary lifting of the PSE’s trading suspension.
The public float of SP New Energy fell below the minimum earlier this year after a series of acquisitions that involved swapping shares for assets. The PSE suspended trading on the stock starting June 2.
Under PSE listing rules, listed firms whose public float fall below 20 percent “shall be suspended from trading for a period of not more than six (6) months and shall be automatically delisted if it remains non-compliant with the MPO (minimum public ownership) after the lapse of the suspension period.”
Public listing opens more avenues for companies to raise funds for projects and operations, often at a lower cost of capital than bigger but privately-held companies.
