Stock Commentary

Alternergy P1.87-B IPO approved by the PSE

Merkado Barkada
Alternergy P1.87-B IPO approved by the PSE

Alternergy [ALTER 1.48 pre-IPO] had its IPO application approved by the PSE.

The updated prospectus contains some changed terms from the preliminary prospectus that we saw before ALTER shelved its plans in 2022.

The most notable change is the 10% reduction in the overall size of the offer, from P2.18 billion to P1.87 billion, but of equal note is the change in the primary/secondary split of the shares on offer.

The previous offer was 87% primary shares, with the over-allotment option the only secondary component. The updated offer is 100% primary, with even the over-allotment option made up of primary shares.

The PSE approval notice didn’t include any dates, but the prospectus indicates that ALTER is looking to set the final price of the offer on March 1, with an offer period from March 8 through March 14, and a listing on March 22. Those dates should be considered tentative until they appear in an official PSE disclosure.

The ticker symbol is confirmed to be ALTER.


As longtime readers will know, I’m a huge fan of primary-heavy IPOs.

That’s not to say that I blindly support or recommend IPOs that are heavy on primary shares, just that I look more favorably on an IPO opportunity that diverts as much of the equity raise as possible to growing the actual business that is up for sale.

For those who are new to the concept, a primary share is a new share issued by the company, and money that investors pay for this new share goes directly to the company.

A secondary share is an old share that is already owned by somebody else, and money that investors pay for any old shares go to the person who sold the old share.

In this deal, ALTER will get 100% of all money raised (minus the fees of course!) in this IPO to put toward things that could grow ALTER’s income in future periods. That’s a good start. 



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