AC Energy Re-IPO - Lots of Moving Parts, Needs for Dust to Settle
AC Energy Corp (ACEN PM) is looking to raise up to about US$341m in its upcoming re-IPO in the Philippines.Valuation of ACEN isn't an easy task. There are multiple moving parts as evidenced by the long presentation by FTI in their valuation of ACEN. Even so, at the top-end of their estimates and after accounting for proceeds and dilution from the placement, it only implies 5% upside from the bottom end of the price range.
The deal scored poorly on our framework owing to the expensive valuation, high leverage compared to peers, and large deal size.
In this note, we will take a brief look at recent changes at ACEN, valuation from FTI Consulting compared to the placement price range, and share our thoughts on the deal.
Phinma Energy is an energy company based in the Philippines. Co. is engaged primarily in power generation and supply, with secondary investments in petroleum and mineral exploration. Co.'s Electricity Supply business participates in the Philippine Wholesale Electricity Spot Market (WESM) through buying the electricity requirements of its customers and selling the excess output of its generation supply portfolio. Co.'s primary customers are Holcim Philippines in Bulacan and La Union, Quezon I Electric Cooperative Inc. (QUEZELCO) and Sorsogon I Electric Cooperative Inc. (SORECO).
Aequitas Research is a leading ECM research firm with a focus on IPOs and placements/follow-on offerings across the Asia Pacific with deal size of over USD100m.
Hong Kong,
China ADRs,
India,
Japan,
Australia, and
ASEAN.
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