NexGen Energy Corp. shares made little gains on its debut Tuesday at the Philippine Stock Exchange trading under the ticker sign XG.
NexGen shares were up 3 centavos, closing at P1.71 per share from its offer price of P1.68 apiece, or up a mere 1.7 percent.
It opened strong at P1.76 and went as high as P1.84 before succumbing to profit-taking.
The company raised P504 million in gross proceeds from the initial public offering.
“This IPO serves as a timely reminder to other small companies that need to raise capital that the SME Board is a very practical and feasible listing route,” Ramon S. Monzon, PSE president and CEO, said.
“This market debut may just be the beginning of even more exciting things to come for XG, whose goal is to scale its assets to contribute to the growth of the wind and solar industry and address the challenges of climate change by supplying clean and sustainable energy,” Monzon said.
The company operates through subsidiaries SPARC-Solar Powered Agri-rural Communities Corp., 5hour Peak Energy Corp. and Airstream Renewables Corp. These companies produce 13.86 megawatts of capacity.
Funds raised from this IPO will be used to carry out company growth plans. Around half of the proceeds will be for the construction and development of the company’s solar project in Zambales and wind projects in Cavite.
The company is also allocating capital to develop and acquire renewable energy projects.
The IPO will enable XG to increase total capacity to 38.86 megawatts by the end of 2026.
“We look forward to seeing the timely and proper implementation of its pipeline projects, which will surely boost the prospects and the standing of XG in the renewable energy space. For sure, market watchers are watching how XG will fare compared to the other listed renewable energy companies,” Monzon said.
“The IPO is a key milestone in XG history given it provides much-appreciated financing to fulfill our expansion plans. Our investors are key for us to succeed in our objectives,” Eric Peter Y. Roxas, president and CEO, said.
