THE Lopez-led First Gen Corp. at the Philippine Stock Exchange (PSE) on Friday sends is a positive development for the local equities market, Energy Secretary Raphael P.M. Lotilla said on Friday.
First Gen's share price closed its initial day of trading at P45.50, 3.2-percent lower than its initial public offer price of P47. It raised P8.5 billion in its IPO last month, with 180.9 million shares sold.
An industry source said that investors attribute the price cut to the not-so-stellar performance of the companies that most recently listed at the PSE. These include Manila Water Co., whose current share price is some 4.6-percent lower than its IPO price, and SM Investments Corp., whose stock is now 13 percent lower than its initial price.
"First Gen's success would indeed boost the capital market," Lotilla said. "We hope that this will encourage other energy companies in power, geothermal energy and oil and gas exploration to list in the stock market to be able to help them grow their businesses."
First Gen is the largest Filipino-owned and controlled independent power producer in the country with an installed capacity of 1,727-megawatts.
Two of its generating power plants, First Gas Power Corp. and FGP Corp., have provided the anchor load in the Malampaya Deepwater Gas to Power Project, while its Bauang Private Power Corp. was among the projects that helped overcome the power shortages in the early 1990's.
First Gen will use the proceeds of the IPO to improve existing facilities, and expand their capacity.
The DOE encourages energy companies to list their shares at the stock market to strengthen private sector participation in the energy industry. Paul Anthony A. Isla
http://www.businessmirror.com.ph/2006/0213/13%20cos%20firstgen.php
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