SEC PH Approves Filinvest and Dagupan Electric's Initial Public Offerings

​The Securities and Exchange Commission (SEC) has considered favorably the public offerings by Filinvest Development Corporation (FDC) and Dagupan Electric Corporation.

In its meeting on December 19, the Commission En Banc resolved to render effective the registration statement of FDC covering P32 billion of fixed rate bonds, and of Dagupan Electric for 14.66 million common shares, subject to the companies’ compliance with certain remaining requirements.

Filinvest Development Corporation

FDC will offer the peso-denominated bonds in tranches within a period of three years. For the first tranche, the company will offer up to P7 billion, with an oversubscription option of up to P3 billion.

Assuming the oversubscription option is fully exercised, FDC could net up to P9.87 billion from the offering. Proceeds will be used to partially finance the redemption of its maturing bonds and capital expenditures, as well as for general corporate purposes.

The bonds will be issued at face value from January 25 to 31, 2024, in time for listing on the Philippine Dealing and Exchange Corp. by February 7, 2024, according to the latest timeline submitted to the Commission.

FDC engaged BDO Capital & Investment Corp., BPI Capital Corporation, China Bank Capital Corporation, East West Bank, First Metro, Land Bank of the Philippines, RCBC Capital Corporation, and SB Capital Investment Corporation as joint lead underwriters and bookrunners for the transaction.

Dagupan Electric

Dagupan Electric will conduct its public offering consisting of 2.2 million shares at P533 apiece.

Net proceeds from the offer could amount to P1.12 billion, which the company will use to finance capital projects related to its electricity distribution services over a three-year period. This includes the construction of a new substation in Sta. Barbara, Pangasinan and line extension, rehabilitation, and upgrades, among others.

The offer will run from January 8 to 12, 2024, based on the latest timeline submitted to the SEC.

Dagupan Electric has tapped Penta Capital & Investment Corporation as the sole underwriter for the offer.

Incorporated in 1961, Dagupan Electric is engaged in the distribution of electricity in certain areas in the province of Pangasinan. It services a total of a total of 135,445 customers in the City of Dagupan, Municipalities of Calasiao, Sta. Barbara, San Fabian, San Jacinto, and Manaoag, and Barangays Bolingit and Cruz in the City of San Carlos.

Previously, the SEC has also approved the public offering of Pampanga-based Angeles Electric Corporation, conducted in compliance with Republic Act No. 9136, or the Electric Power Industry Reform Act, which states that generation companies shall offer and sell to the public a portion not less than 15% of their common shares to the public.