Power company Pacerm-1 Energy Corp. has obtained clearance from the Securities and Exchange Commission (SEC) to raise up to P15.89 million through a direct public offering (DPO) in September.
The SEC announced on Tuesday that Pacerm-1 will publicly offer 26,891 common shares priced at P2,100 per share from September 1 to November 30.
“The shares may be sold to any person, partnership, cooperative, corporation, or trust account,” the SEC stated.
A DPO allows a company to sell shares directly to the public without the need for financial intermediaries, thus avoiding the usual expenses incurred in a typical initial public offering.
The proceeds from the DPO will be used to repay long-term loans that were previously used to fund Pacerm-1’s power generation projects, according to the SEC.
Expenses related to the offering have already been deducted from the estimated gross proceeds of P56.47 million, as stated in a preliminary prospectus dated May 12.
The offering is in compliance with an order from the Energy Regulatory Commission, which requires Pacerm-1 to offer not less than 15 percent of its outstanding capital stock to the public.
Philippine Business Bank has been chosen by Pacerm-1 as its main depository bank and loan creditor.
Currently, Pacerm-1 operates a 10.5-megawatt diesel-fired power plant in El Salvador City, Misamis Oriental province. Under a 15-year power supply agreement signed in 2013, the company provides electricity to customers of Misamis Oriental-1 Rural Electric Service Cooperative Inc. (INQ)
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