SEC clears La Union power utility’s public offering
A La Union-based power utility has obtained the corporate regulator’s green light for its P272-million direct public offering (DPO).
The Securities and Exchange Commission (SEC) said on Thursday the Commission en banc gave its go signal last Dec. 27. This was for the registration statement of La Union Electric Company, Inc. (Lueco) covering 2.35 million shares.
This is being made in compliance with Republic Act No. 9136 or the Electric Power Industry Reform Act. The law requires a generation company to offer and sell to the public at least 15 percent of its common shares.
This makes Lueco the second issuer to register under the streamlined guidelines on Securing and Expanding Capital for PowerGen Operators and Wholesale Electricity and Retail Services (SEC POWERS).
Under this move, the utility will offer to the investing public up to 352,950 common shares at P772 each.
A DPO enables a company to sell shares directly to the public without financial intermediaries. Thus, the firm avoids the usual expenses incurred from the typical initial public offering.
The offer period will run Jan. 12 to Jan. 16.
The SEC said Lueco can expect to raise about P251.4 million from the offer. This will enable the cooperative to pursue network expansion and upgrades.
70 years in operation
Penta Capital & Investment Corp. would serve as the sole underwriter for the offer.
Founded in 1955, Lueco’s franchise area covers the City of San Fernando and the towns of Bauang and San Juan in La Union.
As of end-2024, its distribution system consists of two substations—the Bauang Substation and the Poro Substation.
In 2023, the SEC approved the P708-million public offering of Pampanga-based Angeles Electric Corp.
Power firm Pacerm-1 Energy Corp. also received clearance from the Commission to push for a DPO.
In 2025, the SEC and the Energy Regulatory Commission launched SEC POWERS to streamline the registration of securities for power generation and distribution utilities. It is also intended to encourage more investments in the sector.
