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Stock Commentary

Solar Philippines NEC renames itself “SP New Energy Corporation”

Merkado Barkada
Solar Philippines NEC renames itself âSP New Energy Corporationâ

The Solar Philippines NEC [SPNEC 1.74 1.16%] [link] board voted to change its name to “SP New Energy Corporation” to better reflect the “company’s expansion from a single project in Nueva Ecija, to a portfolio that includes operational projects and other developments.”

The name change still requires shareholder approval, and regulatory approval.

SPNEC said that it would be “reintroducing” its business to the market “over the coming weeks”, sharing “new details on its portfolio”, and that its stock rights offering would move forward to facilitate the assets-for-shares swap with SPNEC’s parent company, Solar Philippines.
 

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Zooming out, it’s a little hilarious that SPNEC is “reintroducing” its business to us, considering it hasn’t even been a year since it “introduced” itself to us the first time.

Back then, in December 2021, many (including myself) were excited to see a non-operational renewable energy company use the PSE’s newly-created exception to its listing rules, which normally would have prohibited the listing of an unprofitable or non-operational company, to list SPNEC.

Then, all of a sudden, just weeks from its IPO, SPNEC pivoted away from its original plan to just develop the Nueva Ecija project and its expansion(s), and announced plans to download billions and billions of pesos worth of projects from its parent company.

Yes, this kind of massive pivot probably requires a name change, but why not call it for what it is: the backdoor listing of Solar Philippines.

Well, technically it’s not Solar Philippines the entity, but certainly a huge proportion of its assets.

Calling the company the “SP New Energy Corporation” feels like the board twisting itself in a pretzel to fit the existing ticker symbol, “SPNEC”, which (let’s be honest) doesn’t really matter anymore, and ignoring the reality of the assets that it is taking on.

Why not just rebrand the company under a cool ticker like “SOLAR”, and then rename the company “Solar Philippines” (or some light variation to distinguish from the existing Solar Philippines entity) and be done with it?

Like everyone else, all I can do is sit on the sidelines and try to keep up.

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

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