SEC OKs LUECO direct public offering

THE SECURITIES and Exchange Commission (SEC) has approved La Union Electric Company, Inc.’s (LUECO) direct public offering (DPO), making it the second issuer to register under a framework for power generation and distribution firms.

In a Dec. 27 meeting, the Commission En Banc made effective LUECO’s registration statement covering 2.35 million shares, subject to the company completing remaining requirements, the SEC said on Thursday.

LUECO will offer up to 352,950 common shares to the public at P772 each, potentially raising P251.4 million. Proceeds will fund capital expenditures, business expansion and facility and equipment upgrades. The subscription period runs from Jan. 12 to Jan. 16, with shares to be issued by Feb. 6.

Penta Capital & Investment Corp. is serving as the sole underwriter.

LUECO’s franchise covers San Fernando City and the La Union towns of Bauang and San Juan. Its distribution system includes two substations: Bauang at 20 megavolt-amperes (MVA) and Poro at 67.5 MVA as of end-2024.

The offering complies with the Electric Power Industry Reform Act, which mandates that generation companies sell at least 15% of common shares to the public. — Alexandria Grace C. Magno