MANILA, Philippines - San Miguel Corp.'s power unit is targeting to raise up to P35.5 billion from an initial public offering (IPO) as it eyes to participate in auctions of state power assets.

In a filing with the Securities and Exchange Commission, SMC Global Power Holdings Corp. said it will offer between 300 and 500 million primary and secondary shares at P44 to P71 apiece.

The document did not state the date of the offering, but San Miguel president and COO Ramon Ang earlier said the IPO would probably happen in the second half of the year.

SMC Global Power has tapped Goldman Sachs (Singapore) Ltd, Standard Chartered Securities Pte. Ltd., and UBS AG as joint bookrunners and international lead managers. ATR Kim Eng Capital Partners Inc. and SB Capital Investments Corp. were appointed as domestic lead underwriters.

The company said it will use IPO proceeds for expansion, including the development of greenfield power projects and acquisition of power generation facilities.

SMC Global Power president Alan Ortiz earlier said the company would bid for government contracts to manage the output of power facilities in Cebu and Leyte provinces. State privatization agency PSALM is bidding out the contracts for the 146-megawatt Naga power complex in Cebu and the 640-megawatt Leyte geothermal facility.

San Miguel is currently the largest power producer in Luzon, accounting for nearly 30% of installed capacity. It plans to double its power capacity to 6,000 megawatts in five years.

It said its energy business would become a major revenue contributor in at least a year, possibly outpacing its traditional food and drinks ventures.