NGCP is required under its franchise, signed in 2008, to conduct a public offering within 10 years from the start of operations. Since May 31, the Philippine Stock Exchange has suspended the trading of Synergy Grid shares. It said that upon approval, about 5.27 billion common shares would be the total and outstanding capital stock of the company. The SEC has yet to approve the capital increase, according to the preliminary prospectus. Recently, the Synergy Grid board approved to increase its authorized capital stock from 5.05 billion common shares to 5.3 billion common shares. Morgan Securities, and UBS AG Singapore Branch will serve as the joint global coordinators and joint bookrunners for the offer. Joint domestic underwriters and joint bookrunners are BDO Capital, BPI Capital Corporation, and PNB Capital and Investment Corporation.īofA Securities, J.P. Sy is the chairman of Synergy Grid, while Coyiuto is vice chairman.īDO Capital & Investment Corporation will serve as sole domestic coordinator. The more you know about the fundamentals of the company, the better your chances in handling your investment risk and returns.Henry Sy Jr.’s OneTaipan holds a 30% stake in NGCP through Monte Oro Grid Resources Corporation, while Roberto Coyiuto Jr.’s Pacifica21 holds the other 30% through Calaca High Power Corporation. SGP, which has successfully raised P13.8 billion last year following its follow-on offering, has fallen by as much as 33.3 percent from its 52-week high of P16.50 per share this year.Īlthough the stock has recovered recently to P13.36 per share, its share price is still far from its fundamental market value.Īs in any value stock, it is always good to spend some time understanding the business of the company and evaluate its long-term potential. This is not to mention energy companies in general also have high operating leverage, which helps them deliver high profit margins over time.Īmong the energy-related stocks in the market, transmission system operator Synergy Grid (PSE: SGP) is one of the most promising to recover strongly, being the most undervalued power company. Higher electricity price, as a result of inflation, increases the returns of energy companies.
Synergy company philippines registration#
In a statement, the Securities and Exchange Commission (SEC) said it received Synergy Grids registration statement for its plan to offer 1,053,500,000 common shares at an offer. But market history has shown that energy stocks tend to do well during periods of high inflation and interest rates in the long-term because demand for electricity will remain the same regardless of the price. Synergy Grid & Development Phils., Inc., the majority owner of the National Grid Corporation of the Philippines (NGCP), has filed for a P28.86-billion public offering. One reason why energy stocks have done poorly is because a rise in interest rates tends to lower their valuation, causing their stock prices to fall. This recovery, however, is still short of the Philippine Stock Exchange Index’s current loss of -3.6 percent, making the energy sector one of the most underperforming industries so far, along with properties (-4.36 percent) and services (-11.6 percent). The total market capitalization of listed energy companies in the Philippine Stock Exchange has lost as much as -10.2 percent during the height of market sell-off last June, but has since recovered to a year-to-date loss of -5.6 percent.
Energy-related stocks have been one of the hardest-hit sectors in the stock market since inflation and interest rates began to rise early this year.
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