Alpha-Centric ESG Research

Kyle Rudden

Synergy Grid & Development Philippines / ESG

The National Grid Corporation of the Philippines (NGCP) – the operator of the country's electricity transmission system – is reportedly preparing for an IPO of at least US$1 billion, valuing the utility at US$5 billion or more. It would be the largest IPO in Philippine Stock Exchange (PSE) history.Reportedly. Possibly. An "imminent" IPO has come and gone several times in recent years, so there is no sense holding one's breath. However, this time feels different; there are new reasons to think it might happen. Perhaps not in February as has been suggested, but months not years.Ergo, this Insight. My pre-pre-IPO ESG analysis of NGCP. That extra "pre" prefix suggests a follow-up when an IPO is official. Though this Insight is thorough for a pre-pre-IPO analysis, some issues warrant a deeper dive, when a listing is officially imminent, and real money is on the table.I would have preferred a neutral rating for NGCP, but given a binary choice (bullish or bearish), the decision was clear. Despite compelling long-term ESG positives (I can even envision an upgrade in the future), there is just too much near-term uncertainly to stick one's neck out this early.

The National Grid Corporation of the Philippines (NGCP) – the operator of the country's electricity transmission system – is reportedly preparing for an IPO of at least US$1 billion, valuing the utility at US$5 billion or more. It would be the largest IPO in Philippine Stock Exchange (PSE) history.Reportedly. Possibly. An "imminent" IPO has come and gone several times in recent years, so there is no sense holding one's breath. However, this time feels different; there are new reasons to think it might happen. Perhaps not in February as has been suggested, but months not years.Ergo, this Insight. My pre-pre-IPO ESG analysis of NGCP. That extra "pre" prefix suggests a follow-up when an IPO is official. Though this Insight is thorough for a pre-pre-IPO analysis, some issues warrant a deeper dive, when a listing is officially imminent, and real money is on the table.I would have preferred a neutral rating for NGCP, but given a binary choice (bullish or bearish), the decision was clear. Despite compelling long-term ESG positives (I can even envision an upgrade in the future), there is just too much near-term uncertainly to stick one's neck out this early.

National Grid Corporation of the Philippines: Pre-IPO Uncertainty Eclipses Positive Long-Term Story

Philippines

Synergy Grid & Development Phils., Inc. does not have significant operations. It focuses on power, energy, utilities, and allied business activities. The company was formerly known as UEM Development Phils., Inc. and changed its name to Synergy Grid & Development Phils., Inc. in March 2011. Synergy Grid & Development Phils., Inc. is based in Pasig City, the Philippines.

Synergy Grid & Development Philippines (SGP PM)

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National Grid Corporation of the Philippines: Pre-IPO Uncertainty Eclipses Positive Long-Term Story

NGCP's potential US$1 billion IPO would be momentous for the Philippines. However, despite a compelling long-term ESG story, there is simply too...

Kyle Rudden