Quick Take: ALTER’s IPO and 3 other market updates

alternative energy [ALTER 1.28 pre-IPO] https://news.google.com/rss/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 set its price at 1.28p/share, which is 13.5% below the maximum price of 1.48p/share that ALTER advertised in its preliminary prospectus. Vince Perez, the former Energy Department minister, hopes to raise 1.66 billion pesos from the IPO to fund expansion of solar and hydroelectric projects and to pay off “accrued debt” he incurred from the acquisition of Kirahon Solar Energy Corporation are.

MB Quick Take: When the price data was delayed, I thought there was a chance ALTER would pull one Upson International [UPSON pre-IPO] and delaying the IPO by a few weeks or maybe even doing a “market conditions” stunt and postponing it indefinitely to wait for a clearer uptrend in PSE valuations. Credit where credit is due: ALTER has lowered the price and is pushing the transaction (so far).

Aboitiz power [AP 10.80] https://news.google.com/rss/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 Net income for FY22 was P27.5 billion, up 32% from FY21’s P20.8 billion. ` attributed the outperformance to “fresh” contributions from its 1,336MW GNPower Dinginin facility and “higher availability” in the rest of its portfolio. Excluding one-time gains of 1.0 billion pesos, `’s year-over-year profit growth was still 27% higher than in fiscal 21. ` said it was ready to “ride the waves of transformation” during it seeks to “leverage digitalization and innovation” to “continue to improve our operations.”

MB Quick Take: Did the Aboitiz family steal the Villars’ copywriter? If you can get past the corporate buzzwords (there’s no guarantee), this teaser shows ` for what it really is: a rising force in the crowded power game that has significant tangible and intangible assets filling its sails for the future . ` appears to be the primary beneficiary of the family’s recent political “luck,” which was only meant to sap an already pretty solid pipeline of projects and opportunities.

Synergy Grid [SGP 11.16 0.9%] https://news.google.com/rss/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 declared cash dividend for the first quarter of P0.1737/share, payable April 13 to shareholders of record March 23. Annualized, the dividend represents a 6.2% yield relative to SGP’s closing price of 11.16p/share. The Q1 dividend represents an annualized return of 5.8% compared to SGP’s subsequent offering price (FOO) of £12.00/share.

MB Quick Take: SGP continues to deliver its dividends, but the stock price was a major disappointment for FOO buyers who were probably hoping for a brighter future. In a way, these FOO buyers are no different from the hordes of REIT IPO buyers who thought they were locking themselves in at relatively attractive rates when these stocks first became available and who are soon to be swept away by the ever-rising wave of inflation Water pressure and associated interest rate hikes forced equity valuations lower.

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ACCENT [ACEN 6.52 2.7%] https://news.google.com/rss/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDMvMDkvMjI1MDQyMi9xdWljay10YWtlLWFsdGVycy1pcG8tYW5kLTMtbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 amended its Articles of Incorporation to carve out 100 million common shares of preferred stock for the Board of Directors to issue in series or tranches at prices and dividends of the Board’s choice.

MB Quick Take: The original articles of incorporation just split ACEN’s entire authorized share capital of P48.3 billion into common stock, so this small spin-off will give the board a fairly easy way to sell some debt, such as mega wide [MWIDE 3.33 0.6%] is doing. ACEN gave no indication of what the board would use the funds for, but the company’s other disclosures indicate a desire to increase its land acquisition budget and expand the use of that budget to Australia and Indonesia. Selling preferred stock is a flexible way to take on debt, provided the company has enough cash to redeem the stock before stepping up, as it did Phoenix Petroleum [PNX 19.74].

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