Raslag diverts IPO funding to purchase property in August
Raslag [ASLAG 1.78 2.20%] [link] disclosed that it plans to divert 100% of the P250 million that it had allocated to “funding pre-development work for RASLAG-5” and to “other pipeline solar projects” to, instead purchasing “real property for RASLAG-5”.
The timeline of the original application of the proceeds for that line item was originally between 2022 and 2024, but ASLAG noted that it would look to spend the money on land for RASLAG-5 by the end of this August. No other guidance was provided.
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This diversion comes out of the second-largest line item in ASLAG’s use of proceeds list, just behind the P330 million for “funding the equity portion of RASLAG-4’s development and construction”. Strangely, the original description of the diverted line item in the prospectus doesn’t mention “RASLAG-5” pre-development work, only the very very vague “Funding for pre-development work for pipeline solar projects”.
In the prospectus, ASLAG said that it had already bought the land for RASLAG-5 back in 2018 and 2020. If I were an ASLAG shareholder (full disclosure: I’m not), I’d be asking some questions about the land issue (why they’re buying land for something they said they already had the land for), but I’d be happy to see the company apply the proceeds of the IPO faster, and I’d be happy to see ASLAG’s future pipeline taking shape in a more concrete way.
Land for RASLAG-5 next month is a lot more tangible and progressive than some vague idea of “pipeline solar projects”. I’d love to know what changed behind the scenes. Might have been something as pedestrian as finding a great lot at a good price that was better than what they already had, and wanting to nail that down as quickly as possible.
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