Philippines’ National Grid Corp plans what could be one of the country’s biggest IPOs

Photographer: Asad Zaidi/Bloomberg

The Philippines’ electricity grid operator is looking into conducting an initial public offering (IPO) to comply with regulatory requirements, its spokeswoman said on Wednesday, in what could be one of the country’s largest public share sales.

The National Grid Corp of the Philippines (NGCP), partly owned by China State Grid Corp, was originally required by a 2008 law covering its franchise terms to sell at least 20% of its shares to the public within 10 years.

“We were previously advised that market conditions may not be ideal at the moment, but we continue to take steps to prepare for an eventual IPO,” NGCP spokeswoman Cynthia Alabanza said in a text message.

Compliance with the franchise terms is the priority for the IPO, Alabanza said.

Bloomberg on Wednesday said that NGCP is planning an IPO that could raise as much as $1 billion, quoting people with knowledge of the matter, who said deliberations were at an early stage.

The Philippines energy regulator has given the NGCP a deadline to list its shares, one banker said, who also expressed doubts about whether a listing could take place this year given turbulent market conditions.

Another banker expressed doubts that the IPO could raise as much as $1 billion.

In October, fibre broadband provider Converge ICT Solutions Inc completed a $600 million IPO, the country’s second largest.

In 2007, a consortium including China’s State Grid, which holds a 40% stake National Grid, won the right to operate the Philippine power grid for $3.95 billion.

Reuters

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.