Quick takes from around the market

1. Alternergy [ALTER 0.72, down 4.0%; 43% avgVol] [link] board approved a plan to list its Series 1 and Series 2A preferred shares that are already issued and outstanding. ALTER will apply with the PSE to list ~370 million Series 1 preferred shares, and 100 million Series 2A preferred shares.

MB quick take: The Series 2A shares were the ones that ALTER sold to GSIS for P1.45 billion in a private placement back in October, and the listing here is part of ALTER’s plan to use the preferred shares as a part of its ongoing capital raising activities. Buyers will like the ability to easily sell the preferred shares on the public market.
 

2. Raslag [ASLAG 1.23, down 0.8%; 58% avgVol] [link] board approved the P0.8 billion purchase of lots in Nueva Ecija for the RASLAG VII and RASLAG VIII Solar Power Projects. The terms of the purchase include P80 million in earnest money, a P201 million down payment, and the obligation for ASLAG to pay 9 monthly payments of P58.3 million to cover the remainder of the balance.

MB quick take: The land is an amalgamation of 36 separate lots all from “various landowners” that have “no relationship with ASLAG”. Anyone who has ever done a multi-lot land deal with unrelated third parties will know how tricky these transactions can be. It’s also worth noting that these plans are for power plants that are beyond what ASLAG spoke about in its 2022 prospectus, meaning that RASLAG-7 and RASLAG-8 represent the potential for organic growth for IPO buyers and shareholders. The stock is down 39% from its IPO.
 

3. Citicore Renewable Energy (CREC) [link] had its P12.9 billion IPO application approved by the SEC. CREC is the parent company of Citicore Energy REIT [CREIT 2.66, down 0.8%; 87% avgVol] and is part of Edgar Saavedra’s group of companies which includes Megawide [MWIDE 3.31, up 1.5%; 207% avgVol]. CREC will still need to obtain approval from the PSE to conduct the listing.

MB quick take: CREC will get some solid offer period dates and a more solid listing date once it gets PSE approval. It’s already the second-largest solar power producer in the country, and the estimated P10.7 billion that it will net from the transaction will go a long way