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SPNEC shares surged 11.2 percent to P1.39 as a P4.98-billion asset deal put a potential second IPO back in focus.
China Bank Capital's Juan Paolo Colet sees a stronger re-IPO case but says expanding the project pipeline will be crucial to attracting investors.
MGEN Renewables expects a P774-million profit in 2026, reversing a P4.1-billion loss last year as MTerra Solar starts delivering earnings.
The stock jumped 11.2 percent to P1.39 on heavy trading following the announcement of plans by the Manila Electric Co. (Meralco) subsidiary to expand its solar power business.
Bigger renewable energy portfolio
MGEN Renewables approved a deal to acquire stakes in five renewable energy companies from another Meralco Group unit in exchange for 3.11 billion new shares priced at P1.60 each, a 30-percent premium to SPNEC's Oct. 23 closing price.
The P4.98-billion transaction would give the listed company more operating power plants that generate revenue, potentially making it more attractive to big investors ahead of another share offering.
Tycoon Manuel V. Pangilinan, Meralco's chair and CEO, said an IPO remains under consideration, although its timing has yet to be decided.
“We just have to wait for market conditions and the impact of El Niño,” Pangilinan said during Meralco's quarterly financial briefing on Wednesday.
Deal expert's view
China Bank Capital managing director Juan Paolo Colet said the latest developments could help MGEN Renewables make a more compelling pitch to investors.
"The company is laying the groundwork for a strong re-IPO case. It is well on track to achieve profitability this year, while the addition of operating assets is expected to further boost earnings,” Colet said in a text message on Wednesday.
“While improving financial performance is important, investors will also focus on growth. Expanding the project pipeline will therefore be essential, with visibility on that likely as new rounds of the Green Energy Auction Program are rolled out by the Department of Energy,” he added.
Beyond MTerra Solar
The expansion would also reduce MGEN Renewables' reliance on MTerra Solar, its massive solar and battery storage project in Central Luzon.
MTerra Solar, one of the world's largest solar farms with battery storage, began commercial operations in August and has since sold 623 gigawatt-hours of electricity.
Colet said the additional assets could also give MGEN Renewables the scale to compete with some of Southeast Asia's biggest solar power companies.
“MGENR is quickly establishing itself as one of the Philippines’ most significant renewable energy platforms. The company already owns the world’s largest integrated solar and battery energy storage facility at a single location,” Colet said.
“The planned infusion of additional solar assets would further strengthen its portfolio and position MGENR among Southeast Asia’s largest pure-play solar power companies. Such scale is likely to attract increased interest from institutional investors seeking exposure to the region’s energy transition story,” he added.
Another shot at the IPO market
A second public offering would come nearly five years after SPNEC raised P2.7 billion in its December 2021 stock market debut, before the Meralco Group took control in 2023 and turned it into its main listed renewable energy company.
Profit turnaround
The expansion comes as MGEN Renewables approaches its first profitable year, helped by P1.1 billion in core earnings from Terra Solar Philippines Inc., the company behind MTerra Solar, during the first nine months of 2026.
That helped cut MGEN Renewables' losses by 96 percent to P24 million, with the company now expecting a P774-million full-year profit after losing P4.1 billion in 2025.
MGEN Renewables also approved plans to invest up to P7.815 billion more in Terra Solar Philippines Inc., subject to approval from lenders and its project partner Actis.
—Edited by Miguel R. Camus
