NEXGEN Energy Corp., the wind and solar power arm of Pure Energy Holdings Corp., formally joined the Philippine Stock Exchange's (PSE) Small, Medium and Emerging (SME) Board on Tuesday following its P529-million initial public offering (IPO).

NexGen shares opened at P1.76 each, higher than the IPO price of P1.68, peaked at P1.84, and eventually closed 3 centavos higher at P1.71 apiece.

The renewable energy company offered to the public 300 million new common shares at P1.68 each, with an overallotment option of 45 million secondary shares, from July 1 to 8.

It raised P504 million in net proceeds as only 15 million shares of the overallotment option were snapped up by investors. NexGen will not receive any proceeds from the sale of the overallotment option.

The company has said that it will use half of the proceeds for the construction and development of its solar project in Zambales and wind projects in Cavite. It will also allocate capital to develop and acquire renewable energy projects.

PSE President and Chief Executive Officer Ramon Monzon welcomed NexGen as the first renewable energy company to list on the SME board, noting that the SME board "is a very practical and feasible listing route" for small to midsize companies.

"Hopefully, this IPO will enable XG to increase its total capacity to 38.86 megawatts (MW) by the end of 2026," Monzon said.

During Tuesday's bell-ringing ceremony, NexGen President and Chief Executive Officer Eric Peter Rojas said: "We take off from the cue of PSE President Ramon Monzon, as he stressed here again today ... that there is no right time for a company to do an IPO."

"When you need to raise capital for your operations, go for your IPO, quote unquote. Today, we are proud to be the third IPO this year and part of the PSE's goal to have at least six IPOs for 2024."

Rojas said the firm was in a position to ride a rising stock market with the benchmark index said to be strengthening toward the 7,000 level.