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[May 14, 2007]

Aboitiz Power IPO OKd; P6 price eyed

(Manila Standard Via Thomson Dialog NewsEdge) The Securities and Exchange Commission approved the P12-billion initial public offering of Aboitiz Power Corp., the power generation company of Cebu-based conglomerate Aboitiz Equity Ventures Inc.


Documents obtained from the SEC showed that Aboitiz Power would register 1.7 billion common shares via primary offering and up to 300 million common shares for overallotments.

Aboitiz Power has set a maximum offer price of P6 per share, higher than the initial estimate of P4.67 per share. It will hold the IPO from July 4 to July 10.

Aboitiz Power plans to offer 1.19 billion shares to foreign investors and 510 million shares to domestic investors.

UBS will serve as sole underwriter for the offering.

Aboitiz Power plans to use proceeds from the IPO to improve the company's power generation and distribution facilities, invest in capacity expansion, which may include potential acquisitions of power generation and distribution systems, and develop greenfield or clean energy projects.

Aboitiz Power earlier said that it would spend P8 billion in capital expenditure over the next two years, primarily to expand its generating capacity.

Aboitiz Power will earmark P2.68 billion this year and P5.32 billion in 2008.

Copyright 2007 Kamahalan Publishing Corp. Source: Financial Times Information Limited.

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