MRC realigns investment strategy in preparation for share offering

MRC Allied Inc. plans to realign its investment strategy in the renewable energy sector to attract institutional investors for its P1 billion share offering within the first half of 2019.

Newly-appointed MRC president Gus Cosio said the company would conduct strategic planning in the second week of January to detail its investment plans.

The company is targeting institutional investors—such as private equity investors, fund managers, investment companies, investment banks—for its P1 billion share sale to bet on MRC’s transformation into a renewable energy startup.

“We’re trying to approach institutions rather than individuals. For that to happen, we have to have a good program to offer to institutions. That’s why we’re saying we will have a strategic planning,” he said.

MRC first announced its share sale in mid-2017, which was aimed to bankroll its plans to develop renewable energy projects as it shifts its focus on the power sector.

In April this year, the firm reduced the amount of shares to be sold through a private placement, but raised the offer price from 2.56 billion common shares at P0.70 apiece to 1.43 billion common shares at P0.39 apiece.

MRC is looking to use part of the proceeds to increase its stake in the 50-MW Sulu Electric Power and Light Philippines Inc. (Sepalco) solar project, where it currently holds a 15 percent stake.

Proceeds will also be used to fund renewable energy project developments, Cosio said.

“We want to strike where it will add most value and economic activity,” he added.

The company is targeting 100 megawatts (MW) of solar power projects within the next two years.

It recently inked a memorandum of agreement (with local firm Edward Marcs Philippines Inc. (EMPI) to power up two rice milling plants in north Luzon using solar power.

Under the deal, EMPI will design, supply, construct and install its 550-kilowatt-peak (kwp) grid-tied solar photovoltaic (PV) rooftop project for two rice milling plants located in the Northern Luzon.

This is part of the company’s solar PV project pipeline of at least four MW, which MRC hopes to complete in the next two years.

MRC also executed an agreement for the development of at least 1.1-MW solar PV rooftop system for a mall located in Mindanao.