NGCP on track with $1 billion public offer

MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is on track with its $1-billion initial public offering (IPO) as part of its franchise obligation and in compliance with the six-month window ordered by the Energy Regulatory Commission for its maiden offering.

“This IPO is part of our franchise and is something we have been preparing early on. Right now, we’re on track with our planned activities and in accordance with the ruling handed out by the ERC, we will comply, and we will be giving them monthly updates and we are mindful of the six-month deadline,” NGCP spokesperson Cynthia Alabanza said in a virtual roundtable discussion with reporters.

The ERC, in an order dated March 10, but posted only this week, required NGCP to complete its IPO, in compliance with Republic Act 9511, within six months from the date of receipt of the order.

It had also directed the grid operator to submit a monthly progress report on its public listing activities on or before every fifth of the month.

When asked when the six-month extension deadline would lapse, NGCP said it has until “around November” to complete its IPO, ERC commissioner Floresinda Digal said in a text message.

In coming up with the decision, the ERC said NGCP  failed to establish that the current pandemic is unsuitable for its IPO obligations, given that several companies like grocery retailer MerryMart Consumer Corp. and Converge Information and Communications Technology Solutions Inc. undertook their initial public listings despite the pandemic and were welcomed by the public.

However, the NGCP official said the IPO preparations have been undertaken way before the ERC came out with the order.

“It’s something we’ve been working on pre-pandemic. This isn’t something we just started when we got the ERC ruling. This is something we’ve been preparing for because it is part of our franchise and it is an obligation that is clear to us,” Alabanza said.

In the ERC order, the power regulator cited NGCP’s efforts to start complying with its IPO requirements, as it engaged financial advisers, shortlisted joint global coordinators, reviewed proposals of underwriters and is in the process of finalizing the engagement of legal counsels.

Also in the order, the ERC cited that the grid operator has tapped Standard Chartered Bank (Philippine Branch) and BDO Capital and Investment Corp. as its international and domestic financial advisors.

BDO Capital president Eduardo Francisco, who was presented by NGCP as an expert witness, said the financial adviser was tapped in September last year and the estimated value of the total shares to be listed is approximately $1 billion.

Last year, the ERC thumbed down NGCP’s request to delay its IPO which was supposed to be conducted in 2019 as prescribed by law.