Welcome to the top twenty something index issues of the PSEi that have big market capitalization, plus some banks and financial big caps as well
By Zinnia B. Dela Peña
The Philippine Star
First Generation Holdings Corp. (First Gen), the holding company of the Lopez family’s power and energy-related businesses, is pushing through with its initial public offering (IPO) of shares this year to raise around P11.22 billion.
In a registration statement filed with the Securities and Exchange Commission (SEC), First Gen said it will offer a minimum of 151.57 million shares at P74 per share up to a maximum of 219.93 million shares at P51 per share. The shares will be sold in both the local and international markets.
Tapped as global coordinator and bookrunner for the issue is Credit Lyonnaise SA while BDO Capital & Investment Corp. and ATR Kim Eng Capital will serve as lead manager for the domestic offer.
The book value of the company, based on its unaudited financial statements as of June 30, 2005 was P13.52 billion or P29.90 per share. The book value represents the amount of the company’s total assets less the sum of its liabilities less the equity of the outstanding value per share.
Proceeds from the offering will be used for improvements in existing facilities, investments in capacity expansion, which may include both potential acquisitions of power generation facilities and the development of greenfield projects as well as for general corporate purposes, including working capital and investments.
PSE president Francis Lim said he is happy that First Gen is pursuing its planned IPO despite the political problems besetting the country.
Once listed, First Gen will be the fifth company owned or controlled by the Lopez family that will be traded on the exchange next to power utility giant Manila Electric Co. (Meralco), ABS-CBN Broadcasting Corp., Benpres Holdings Corp. and First Philippine Holdings Corp. (FPHC).
First Gen has set aside $12.7 million for its capital expenditures this year and next year, $10.7 million of which is planned for 2005.
During the first six months of the year, First Gen already spent P86 million on the acquisition of the Agusan mini-hyrdro plant.
First Gen will put up a new 550-megawatt combined cycle, gas-fired plant on the land adjacent to its Sta. Rita and San Lorenzo plants.
As opportunities arise, the company intends to expand into businesses that complement its power generation operations, as well as seek to leverage its relationship with the Lopez Group.
In particular, its plans include the development of downstream natural gas transmission and distribution facilities and the development of fuel-related services which may include liquefied natural gas import terminals, fuel tanker chartering and oil pipeline management.
First Gen is 88.44 percent owned by First Philippine Holdings Corp. The balance is held by AIDEC FG Power Corp. (7.75 percent), a $400- million investment fund focused on Asian private sector infrastructure projects; and Sumitomo Corp. (3.81 percent), one of the largest trading conglomerates in Japan.
Incorporated on Dec. 22, 1998, First Gen controls some 1,725 megawatts of installed capacity and is one of the largest independent power generation companies in the country.
First Gen’s subsidiaries include First Gas Power Corp., FGP Corp. and Bauang Private Power Corp. First Gas, a joint venture between FPHC and British Gas, owns the 1,000 megawatt Sta. Rita natural gas-fired plant in Batangas while FGP owns the 500 megawatt san Lorenzo power plant also in Batangas.
BPPC, on the other hand, owns and operates a 225 megawatt-fired medium speed diesel power plant.
Other companies in the First Gen Group are First Gen Renewables Inc. which focuses on renewable energy technologies, First Gas Pipeline Corp. and FG Land Corp.
For the first half this year, First Gen reported a net income of P2.46 million on revenues of P21.81 billion.
Elizabeth L. Sanchez
Inquirer News Service
FIRST Generation Corp., the holding company of the Lopez group's power generation assets, may offer additional shares under a "greenshoe option" in its proposed initial public offering (IPO) of P11 billion worth of shares, Inquirer sources in the industry said.
First Gen is braving an IPO in December to raise P11.22 billion in fresh funds.
If it pushes through this year, First Gen's will be the third major IPO after utility firm Manila Water Co. and holding firm SM Investments Corp.
First Gen earlier said it would offer 151.6 million to 219.9 million shares. It said the price would range from P51 apiece in an offering of 219.9 million shares to P74 in an offering of 151.6 million shares.
First Gen will use the proceeds to improve facilities, expand capacity, and acquire power plants.
Sources said that an IPO would give First Gen the financial muscle needed to bid for major plants to be sold by privatization agency Power Sector Assets and Liabilities Management Corp. (PSALM).
FirstGen eyes gov't steam power plants
Posted: 3:45 AM | Nov. 29, 2005
Elizabeth L. Sanchez
Inquirer News Service
FIRST Generation Corp is studying plans to bid for the government's geothermal plant in Albay province and one that straddles the provinces of Laguna and Batangas, which together have a capacity of 700 megawatts, Inquirer sources in the industry said.
First Gen is preparing for a public stock offering either before the end of the year or in the first quarter of next year to raise P11 billion
maybe thats why hindi pa maka-ipo
First Gas owes Malampaya group P12.8b
http://www.manilastandardonline.com:808 ... nov30_2005
By Alena Mae S. Flores
First Gas Power Corp. owes the Malampaya consortium of Shell Philippines Exploration B.V. (Spex) P12.8 billion for the cost of unutilized gas under a disputed sale and purchase agreement (GSPA) between the two companies.
FGPC and Manila Electric Co. (Meralco), which buys power from the 1,000-megawatt Sta. Rita and 500-mw San Lorenzo power plants owned by the former, agreed on a take-or-pay agreement with Spex, which calls for the payment of natural gas supply, whether utilized or not.
Meralco reflected the cost of unused gas as deferred pass-through fuel cost.
The amount of unused gas worth P12.8 billion represents an increase of 64 percent or P5 billion from an earlier estimate of P7.8 billion.
FGPC is a subsidiary of First Generation Holdings Corp. FGHC, in turn, is owned by First Philippine Holdings Corp. (FPHC), the publicly-listing holding company of the Lopez group.
“If the dispute is resolved in the gas seller’s favor, the amount deemed owed by First Gen’s subsidiaries shall be paid in accordance with the procedures set forth in the GSPA,” FPHC disclosed to the stock exchange.
FGPC argued that it should be given the same “payment flexibility” accorded to National Power Corp.
Napocor earlier signed a $350 million deferred payment facility with Spex and other members of the Malampaya consortium — Chevron-Texaco and PNOC-Exploration Corp. (PNOC-EC), the exploration arm of state-owned Philippine National Oil Co.
Napocor also has a GSPA with Spex to supply fuel to the 1,200-mw Ilijan power plant in Batangas.
Spex offered Napocor a deferred payment facility for its take-or-pay obligations under the GSPA for the Ilijan gas-fired facility.
FGPC claimed that Spex breached the terms of the most favored nations clause (MFN) contained under their gas sale purchase agreements by failing to notify and offer the same pricing terms and conditions offered to Napocor.
Philippines' First Gen likely to delay IPO-Merrill
SINGAPORE, Nov 30 (Reuters) - First Gen, the largest Filipino-controlled independent power producer in the Philippines, will likely delay its planned $200 million IPO from an expected launch in December, Merrill Lynch said in a report.
First Philippine Holdings Corp. , the parent company of First Gen Corp., said in September that First Gen aimed to raise up to 11.2 billion pesos in an initial public offering, widely expected to be launched next month.
"First Gen (FG), may delay its IPO from December 2005," said the Merrill report dated Nov. 29th.
A source close to the IPO told Reuters on Wednesday the share sale was now expected to be launched early next year.
The Merrill report quoted First Gen as saying "the pace appears too tight, and it is 'very possible' that its IPO would be the first for 2006."
"If the delay results in the IPO competing with a similar/larger offer by another power company in the region, it could dilute international investors' focus on FG," it said.
The delay may turn out to be positive for First Gen as it is reportedly planning a bid in December for 700-megawatt geothermal capacity being sold by the Philippine government, the report said.
First Gen may use its IPO proceeds to fund the acquisition, Merrill Lynch said.
First Gen is expected to participate in the privatisation of state-owned National Power Corp., which is selling dozens of plants and leasing out the nationwide electricity grid as part of a programme to cut the government's debt and budget deficit.
The next Big thing!!!!
http://money.inq7.net/topstories/view_t ... =09&file=3
FirstGen gets SEC nod on stock offering
THE SECURITIES and Exchange Commission has approved the initial public offering (IPO) of stock of First Generation Corp., the Lopez group's holding company for its power plants, which is expected to raise roughly $200 million.
Inquirer sources said First Gen would hold its IPO in February.
By Donnabelle L. Gatdula
The Philippine Star
First Gen Renewables Inc. (FGRI), a unit of the Lopez-owned First Generation Holdings Corp., will bid for three win power projects included in the government’s country’s Wind Contracting Round (WCR).
Data from the Department of Energy (DOE showed that FGRI has specifically expressed interest to develop a potential site for a wind power project in Pandan, Antique under Phase I of WCR.
For WCR Phase II, FGRI intends to bid for Bago City and Cauayan wind power project both located in Negros Occidental.
Aside from wind power, FGRI also adheres to the development of other new and renewable energy sources such as natural gas.
Find a broker who can allocate some to you.
Doubt that you could get some unless PSE limits the allocation size to each individual. IPO allocation are normally given to valued clients of brokerage house, valued suppliers of the company having the IPO and valued clients of the underwriting firms.
Just an opinion.
Maybe this news will help perk up FPH starting friday
Reuters.com - No Spin. No Agenda. Just the Facts. As they happen.
Manila bourse approves listing of First Gen
Thu Dec 15, 2005 04:32 AM ET
MANILA, Dec 15 (Reuters) - The Philippine Stock Exchange (PSE) said on Thursday it had approved the planned listing of First Gen Corp. after its share offering worth up to 20.4 billion pesos ($382.7 million) next month.
First Gen, the largest Filipino-controlled independent power producer in the country, plans to sell 275.5 million shares at 74 pesos each or 360.9 million shares at 51 pesos each in a primary and secondary offering, the bourse said.
The company tentatively set an international roadshow for Jan. 16-26. Its domestic offering was tentatively scheduled for Jan. 30 to Feb. 3
The initial public offering of First Gen would be the first of 2006.
The PSE said the share offering will be a mix of primary, or new shares, and secondary, or stock being sold by existing shareholders.
The number of secondary shares will range from 124 million to 141 million, while the number of primary shares will be between 151.5 million and 219.93 million.
The IPO, along with the secondary offer, will give the investing public from 25.5 percent to 33.7 percent equity in First Gen.
PSE President Francis Lim said First Gen was tentatively scheduled to be listed on the local bourse on Feb. 8.
First Gen, which is expected to raise 11.2 billion pesos from the IPO, plans to use part of the funds to buy power plants from state-owned National Power Corp. (Napocor).
Napocor is selling dozens of plants and leasing out the nationwide electricity grid as part of a programme to cut the government's debt and budget deficit. ($1=53.30 pesos)
© Reuters 2005. All Rights Reserved.
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