SP New Energy Corp. has made it to the exclusive MSCI Philippines Small Cap Index, the only addition to the closely watched stock market gauge.
The solar company replaces Mreit Inc., the real estate investment trust unit of businessman Andrew Tan’s Megaworld Corp.
The MSCI Global Small Cap Index revealed the changes early this week and will take effect at the close of market at the end of the month.
Global index provider MSCI rebalances its indices semi-annually and every quarter.
SPNEC is the only company to be included in the list under the current review.
As this develops, investors gobbled the stock, the shares rising 6 percent as of mid-day Tuesday. It closed at P1.23 per share.
This development is expected to further stimulate investor interest in SPNEC.
New York-listed MSCI has helped global investors build and manage portfolios using research-based tools and insights on risks and performance.
SPNEC was recently acquired by the Pangilinan Group through MGen Renewable Energy Inc., a wholly-owned subsidiary of Meralco Powergen Corp.
MGreen recently raised its stake in the company by acquiring 2.17 billion SPNEC shares from Solar Philippines Power Project Holdings Inc. for P2.5 billion, representing 4.34 percent.
This raised MGreen and affiliates’ stake in SPNEC to 55.96 percent from 50.53 percent.
MGreen is a wholly-owned subsidiary of Meralco Powergen Corp., itself a wholly-owned subsidiary of Meralco, the country’s largest power distributor whose parent firm is MPIC.
As a result of the entry of the Pangilinan Group, SPNEC elected tycoon Manuel V. Pangilinan as its chairman while Leviste is vice chairman.
Solar Philippines continues to own 18.99 billion SPNEC shares with other shareholders and the public owning the remaining shares.
SPNEC is touted as the world’s biggest solar project through 100 percent-owned subsidiary Terra Solar Philippines Inc. targeted for completion by 2027.
The P200 billion Terra solar development in Nueva Ecija and Bulacan will consist of 3,500 megawatt solar and 4,000 megawatt-hours of battery storage.
The first phase of development with target capacity of 2,500 MW is seen completed by 2026.
The second phase is targeted for completion by 2027 with target capacity of 1,000 MW.
