The SEC has finally approved Aboitiz Power’s Initial Public Offering, which will offer shares of the company to the public at a maximum price of P6/each. 2 billion shares are going to be issued, 500M of which will be sold locally while 1B will be sold internationally. I wouldn’t be surprised if the price of the stock doubles on the first day of release (July 4 ~ July 10) given the reputation of the energy generating business to one being perpetually profitable. Not to mention that according to the DOE, Philippine power demand is expected to surpass supply by 2010, so there is going to be a huge demand for power plants.
The Aboitiz family has been synonymous with Power generation since time immemorial. This prominent family from Cebu holds electricity distribution rights in the Visayas and Mindanao and holds ownership to some private power plants in the country.
Aboitiz Power is gearing itself to be a renewable energy business, as quoted from Erramon Aboitiz, EVP and COO of Aboitiz Equity Ventures, the parent company of Aboitiz Power. This is evidenced by their efforts to snatch up existing hydro electric power plants as well as develop new ones. Along the way they can snatch up some carbon credits too for building a green business.
Slightly Off topic. I once chanced upon the calling card of Ernesto Aboitiz, former head of the family conglomerate before he retired a few years back. All that was printed on the card was his name, phone no and the words “Electrical Engineer”. You’d think for a very accomplished man, who has made well in the private sector as well as serviced his country in the Public Sector, he would have opted to put more. Based from the feedback of other people, he was said to be a friendly, approachable and a soft spoken fellow.
Article here
Category: Hydro
May 16th, 2007 at 1:56 pm
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May 16th, 2007 at 4:13 pm
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