Stock News 2013: SEC okays Asia United Bank listing on PSE

English: Phillippine stock market board (Photo credit: Wikipedia)

The Securities and Exchange Commission has approved a plan by the Rebisco group’s commercial banking arm Asia United Bank to debut on the Philippine Stock Exchange and sell as much as P9.68 billion in shares of stock.

AUB plans to sell up to 88 million primary common shares for as much as P110 per share. The base offer consists of 80 million shares while additional 8 million shares were set aside for overallotment.

This offering, which will take place on May 7 to 14, will bring to public hands around 30 percent of the bank’s post-IPO capitalization. IPO pricing will be finalized by May 3 while listing on the PSE is targeted on May 17.

UBS AG Kong Kong branch and Credit Suisse (Singapore) Ltd. have been mandated as the joint bookrunners and joint lead managers for this offering. Mandated as sole global coordinator is UBS AG.

AUB is owned by a diverse group of Asian investors engaged in property development, manufacturing, and other equity ventures. Rebisco, the Philippines’ leading manufacturer, distributor, and exporter of snack food products for the past 49 years, is the biggest shareholder of the bank.

In 2012, AUB posted a 20-percent growth in net profit to P1.36 billion attributed to robust trading and lending activities. The 15-year-old bank, which aspires to be a more significant player in the Philippine banking system, expanded its balance sheet last year by 27 percent to P63.35 billion while its capitalization went up by 25 percent to P11.5 billion. Capital adequacy ratio to risk assets stood at 15 percent versus the minimum requirement of 10 percent.

http://business.inquirer.net/118169/sec-okays-asia-united-bank-listing-on-local-bourse

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Stock News 2013: PSE okays thrift bank’s P4.25-B IPO

Philippine Business Bank Logo (Photo credit: Wikipedia)

The Philippine Stock Exchange has approved an initial public offering worth up to P4.25B by Philippine Business Bank, marking the first Philippine stock market debut for this year.

PBB, the thrift banking arm of the Zest-O group of businessman Alfredo Yao, is set to offer up to 101.33 million in primary shares to the public for as much as P41.94 per share, based on the offering circular released by the PSE. This will bring to public hands about 30 percent of the bank’s post-IPO capital.

The IPO pricing is set to be finalized by February 4 while the offer period will run from Feb. 6 to 12.  Tentative listing date is on Feb 19.

The joint lead underwriters for the issuance are First Metro Investment Corp. and SB Capital Investment Corp.

Proceeds from the offering will be used to finance the bank’s lending activities and also to fund the acquisition of investment securities.

In addition, about P400 million will cover capital expenditure requirements in connection with its branch network expansion program, including the acquisition of new branch banking licenses, the development and implementation of IT (information technology) infrastructure and applications projects.

After the IPO,  Yao (with 37.26 percent) and Zesto Corp. (with 25.17 percent) will remain as the key shareholders of PBB.

http://business.inquirer.net/103073/pse-okays-thrift-banks-p4-25-b-ipo-first-for-2013

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Stock News 2012: EastWest Bank gains in market debut, sets P2-B capex

Gotianun-led lender East West Banking Corp. is setting aside P2 billion to more than double its branch network to 350 by 2014, in line with its bid to become one of the largest banks in the country.

EastWest Bank bucked the broader market’s downward trend yesterday and ended higher on its first day of trade. The stock hit an intra-day high of P20.70 prior to closing at P19.78, up 6.9 percent over its initial public offering (IPO) price of P18.50 each share.

In a briefing following the listing of the bank’s shares, EastWest Bank chairman Jonathan Gotianun said the bank has mapped out an ambitious growth plan aimed at further widening its customer base and geographical footprint.

From the existing 150 branches, EastWest Bank intends to add another 100 branches this year and further increase this to 350 by 2014.

Funding will come from the recently concluded maiden offering of shares, which generated P5.22 billion in total proceeds, inclusive of the greenshoe option.

Gotianun said the IPO underwriters decided to exercise the overallotment option due to strong demand from institutional investors. The offer shares account for about a quarter of the company.

“Our IPO and our listing today will give us growth capital to bring EastWest Bank to the next level of its development. We are very happy for the enthusiastic and positive response to our IPO, both here and abroad,” Gotianun said.

The IPO was the second biggest this year after banking tycoon George S.K. Ty’s GT Capital Holdings Inc.’s P21.6-billion share sale.

“We have undertaken this exercise to enable the bank to grow. We want to be a more relevant and significant player and one that contributes significantly to the country’s growth,” Gotianun said.

Gotianun said EastWest Bank prefers to grow organically first before considering further acquisitions.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=804637

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Stock News 2012: GT Capital IPO raised to P24.4 B

UBS Investment Bank's Offices at 299 Park Avenue in New York City (Photo credit: Wikipedia)
GT Capital Holdings Inc., the listed flagship firm of taipan George S.K. Ty, announced yesterday that UBS, the global coordinator for its recently completed initial public offering exercised in full its option to purchase an additional 6.182 million shares to meet the strong demand from global investors.

This would generate an additional P2.8 billion, raising total proceeds to $505 million or P24.4 billion.

The stock has performed strongly since listing on April 20, rising 13 percent to P513/share as of April 25.

“We are pleased with the overwhelming response to GT Capital’s IPO in the aftermarket performance such that we are able to exercise the over allotment option within three days after the listing,” said company president Carmelo Bautista.

The foreign tranche of the IPO was more than five times oversubscribed, attracting prestigious long-term institutional investors and sovereign wealth funds.

GT Capital is the primary vehicle for the management of the various interests of the Ty family in banking (Metropolitan Bank & Trust Co.), real estate (Federal Land), power generation (Global Business Power), automotive (Toyota Motor Philippines) and insurance (Phil AXA Life Insurance Corp.). Proceeds from the offering will be used to fund the expansion of various units such as the hotel and residential projects of its real estate arm Federal Land and power businesses under Global Business Power.

The IPO is the first on the Philippine Stock Exchange this year and the biggest in more than a year since Cebu Air raised $611 million in October 2010.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801013

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Stock News 2012: GT Capital sets price range for IPO

Three keys logo by Warja Honegger-Lavater. (Photo credit: Wikipedia)
GT Capital, the flagship investment firm of taipan George S.K. Ty, has set the price range for its initial public offering at P415-P470 each share to raise as much as P23 billion.

The maximum offer price is 10.6 to 25 percent lower than the original price indicated in the company’s prospectus.

GT Capital is selling up to 41.217 million shares to raise between P17.1 billion and P19.37 billion.

In case of strong demand, GT Capital has allotted 6.182 million common shares worth P2.9 billion for the greenshoe option.

Including the overallotment option, GT Capital is expected to raise up to P22.28 billion.

As much as 33 million will be sold via an initial public offering while up to 8.217 million shares will be sold by the company’s shareholders Ausan Resources Corp., Grand Titan Capital Holdings and Titan Resources.

The selling shareholders are expected to generate a maximum P3.86 billion from the share sale.

GT Capital is the main vehicle for the management of the various interests of the Ty family in banking, real estate, power generation, automotive and life insurance.

The pricing and allocation of shares for the international offer will be on April 3.

The domestic roadshow kicked off yesterday while the the international roadshow commences today with Singapore as the first leg.

The domestic offer period will run from April 10 to 16.

Listing has been tentatively scheduled on April 20.

Post-IPO, the holding firm will have a market capitalization of P74.26 billion.

Around 60 to 70 percent of the offer shares will be sold overseas while the balance will be offered to local investors.

UBS is the sole global coordinator and international bookrunner for the share sale while First Metro Investment Corp. is the sole domestic underwriter.

Proceeds from the IPO will be used to accelerate key growth projects of the group’s property unit and acquisition of additional stakes in property and power businesses.

http://www.philstar.com/Article.aspx?articleId=789516&publicationSubCategoryId=66

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Stock News 2012: Puregold IPO cited as 2011 Best Mid-Cap IPO by FinanceAsia

FinanceAsia, Asia’s authoritative source for finance and investment banking, has chosen $172 million initial public offering (IPO) of Puregold Price Club, Inc. (PGOLD) as the Best Mid-Cap Equity Deal for 2011.

Puregold chairman Lucio Co accepted the award last Feb. 2 at the Four Seasons Hotel in Hong Kong together with other Puregold officials, including vice chairman/treasurer  Susan P. Co, director Ferdinand Vincent P. Co and president Leonardo B. Dayao.

“Mid-cap IPO candidates in any market have had a tough time convincing investors to part with their money this year, which makes Puregold’s listing in the Philippines even more eye-catching,” FinanceAsia said on its website last Dec. 13, 2011 when it released the list of honorees for its Achievement Award 2011.

The FinanceAsia added that “in a country that has only a marginal weighting in regional indices and where the stock market trades less than $100 million a day, Puregold raised $172 million from its IPO and allocated 70 percent of the shares to international investors, including sovereign wealth funds.”

FinanceAsia added that the offering was multiple-times covered despite a challenging market that saw more than $7 billion of Asian deals being postponed or delayed during the marketing period, but priced at the bottom of the range at a fairly undemanding 2012 P/E multiple of 11.8.

Since its debut in early October, the stock has gained 37 percent, it noted.

“The successful execution of its IPO, which was in fact the only internationally distributed IPO in the Philippines this year, also makes it a worthy winner of our mid-cap deal award,” FinanceAsia said.

Since Puregold’s listing in the Philippine Stock Exchange on Oct. 5, 2011, the company’s shares enjoyed buoyant trading among local and foreign investors. Puregold shares closed at P20.45 per share on Feb. 6, 2012, compared to its IPO price of P12.50 per share.

http://www.philstar.com/Article.aspx?articleId=776923&publicationSubCategoryId=66

Stock News 2011: Smc's 8-Month Income Up 70%

Image via WikipediaSan Miguel Corp. (SMC) net income rose 70 percent in the eight months through August from a year ago on acquisitions of oil-refining and power-generation assets, a person familiar with the company’s financial data said.

The Philippines’ biggest listed company also had revenue that rose by two and a half times, while earnings before interest, taxes, depreciation and amortization almost doubled, the person, who declined to be identified because the information is private, said. San Miguel last month reported first-half profit rose 72 percent to P10.8 billion.

The company that started as a brewer more than a century ago has been expanding into oil refining, power retailing and infrastructure to triple the return it previously earned from food and drinks. Oil refining unit Petron Corp. accounts for about a third of the Philippine oil market, while SMC Global Power Holdings Corp. controls 17.5 percent of the nation’s power generation capacity. The power unit plans to raise as much as P27.3 billion in an initial public offering.

San Miguel will pay a cash dividend of 35 centavos per common share and P1.50 for each Series 1 preferred stock held, it told the stock exchange today, after close of trading.

Profit in the first three quarters of 2010 was P12.7 billion, the company said in a November 2010 statement.

http://mb.com.ph/articles/335434/smcs-8month-income-up-70

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Stock News 2011: PSE encourages more SMEs to go public

Image by Getty Images via @daylife
Businesses are like babies. They need looking after from their hardworking parents, the entrepreneurs.

These entrepreneurs have to care for their “babies” when they aren’t doing well and sing their praises when they reach new heights.

And eventually, entrepreneurs will have to let their firms leave the nest and have prosperous lives of their own.

For parents, this usually means sending their sons and daughters to college. For entrepreneurs, this can mean an initial public offering (IPO).

Jose Antonio Villar, head of the Philippine Stock Exchange (PSE) Marketing Services Department, said some local entrepreneurs have discovered that going public has helped their companies grow faster than if they had remained private.

Despite this, many businessmen that are “in love” with their businesses still have reservations about selling part of their companies to total strangers.

“I know, many of you are thinking, ‘Why should I share my company?’” Villar said.

He acknowledged that many business owners are worried about sharing their company profits and control with outside investors.

But listing on the stock exchange is one way to get cheap capital needed to fund growth and expansion.

He thus urged the small business owners to conduct an IPO and take advantage of the strong capital flows that are expected to enter Asia as international fund managers make bets on the region’s growth prospects.

http://business.inquirer.net/money/topstories/view/20110317-326023/PSE-encourages-more-SMEs-to-go-public

Stock News 2010: Gokongwei Group set to start construction

Image via Wikipedia
Finally, the Gokongwei Group is going to start construction of its long-overdue $500-million naphtha cracker project in Batangas, Board of Investments managing head Cristino L. Panlilio said.

Panlilio told reporters that Lance Gokongwei, president of JG Summit Holdings Inc., who paid him a courtesy call last week and informed him of the project’s development.

“He said that project construction will start in January this year. It is rough half a billion dollar project,” Panlilio said.

The naphtha cracker plant was originally registered with the BoI in 2005 at a project cost of P25.6 billion under the JG Summit Petrochemical Corp. Based on that original registration, the plant was supposed was supposed to start commercial in 2008.

In May 2008, however, the company revised the project with a new commercial operation target of January 2012. At that time, the project cost already ballooned to P34.38 billion, P8.7 billion more than its original P25.6 billion because of the foreign exchange depreciation at that time. It was placed under an entirely new unit – JG Summit Olefins Corp.

This time, however, Panlilio said the project cost is roughly half a billion dollars or back to its original cost of P25 billion. The reduced cost could largely be attributed to the strong peso against the US greenback.

http://www.mb.com.ph/node/290286/gokongwei-group-

Stock News 2010: Cebu Air Jumps 6.8% on Listing Debut, Raises Total of $611 Million from IPO

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MANILA, Philippines – Budget airline Cebu Air Inc. jumped as much as 6.8 percent on its debut Tuesday, as the country's largest public offering rode on the back of a broader market that hit a fresh record high.

The airline, a unit of conglomerate JG Summit Holdings Corp and the second biggest Asian budget carrier by market value, raised $611 million in its IPO including a greenshoe option, making it a record amount in dollar terms for a Philippine listing.

Cebu Air's debut takes place amid a boom in IPOs in Asia as well as strong foreign demand for high-yielding emerging markets such as the Philippines.

Upbeat sentiment following presidential elections in May have helped lift the index about 40 percent this year and it is the second best performer in Southeast Asia after Indonesia.

This backdrop bodes well for upcoming listings in the Philippines, analysts said. Philippine miner Nickel Asia plans to raise $162 million in an IPO next month.

''Having launched successfully, the ones apprehensive on the sidelines are now emboldened to come in,'' said Alejandro Yu, president of R.S. Lim and Company, a local stock brokerage.

Cebu Air's shares opened at 132 pesos after a ceremony that included flight attendants dancing the flight safety routine to a Lady Gaga pop song on the stock exchange trading floor, peppered with tube balloons carrying the airline's yellow orange colours. The safety routine dance was a big hit on YouTube earlier this month.

The stock rose as high as 133.5 pesos, before closing at 133 pesos. The airline had sold about 215 million shares at its IPO at 125 pesos each, Cebu Air's parent said late on Monday.

At Tuesday's close, Cebu Pacific was valued at nearly 97 billion pesos or $2.2 billion, larger than rival Tiger Airways at about $723 million but smaller than Malaysia's AirAsia, valued at about $2.3 billion.

Cebu Air CEO and President Lance Gokongwei said he expects the company's international business to overtake its domestic operations in four to five years as it seeks to increase its international capacity by 25 percent yearly via new foreign routes and flight frequencies.

http://www.mb.com.ph/node/284378/cebu-air-jump

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Stock News 2010: Bourse approves listing of IPVG unit

Image by The Planet via Flickr

THE PHILIPPINE Stock Exchange (PSE) on Wednesday approved the initial public offering (IPO) of IP Converge Data Center, Inc., the local bourse’s top executive said late last week.

The fourth public listing approved by the stock exchange for the year will allow the information and telecommunications arm of listed IPVG Corp. to generate P320 million to P365.5 million in fresh capital.

It will also be the second IPVG subsidiary to go public this year. “The approval was on the same board meeting,” PSE Chairman Hans B. Sicat told reporters, referring to the Oct. 20 PSE board meeting. In the same meeting, the PSE allowed Zamora-led Nickel Asia Corp. to conduct its P8.05-billion IPO.

With the recent development, Mr. Sicat said the local bourse was expecting a total of three IPOs for the year.

In mid-October, the Securities and Exchange Commission (SEC) cleared IP Converge’s plan to sell 45.57 million common shares at P7.04 to P8.80 per share.

The shares are equivalent to 25% of the company. Public listing is set for Dec. 8, with IP Converge tapping Unicapital, Inc. as underwriter and issue manager.

http://www.bworldonline.com/main/content.php?id=20007

Stock News 2010: Globe Asiatique withdraws P3.4B IPO as BDO resigns as underwriter

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MANILA, Philippines -- Beleaguered housing developer Globe Asiatique Realty Holdings Corp. has withdrawn its P3.4-billion initial public offering (IPO) after its underwriter resigned on the heels of reports about the former's questionable loan transactions with state-run Home Development Mutual Fund (Pag-Ibig Fund).

In a circular posted on Monday, the Philippine Stock Exchange said BDO Capital and Investment Corp. had advised Globe Asiatique about its resignation as the issue manager and lead underwriter for the proposed IPO.

"As the Exchange would no doubt appreciate, the resignation of BDO Capital will cause obvious insurmountable difficulties to our ability to launch a successful initial public offering, especially at this stage of the process," Globe Asiatique chief finance officer Dexter Lee said in a letter dated September 6 that posted by the PSE on the same day.

BDO Capital's resignation came in the midst of a controversy over nearly P7 billion in Pag-IBIG housing loans that Globe Asiatique had reportedly taken out on behalf of nearly 9,000 borrowers in Xevera Bacolor and Xevera Mabalacat, two of the firm's housing projects in Pampanga. Hundreds of the loan accounts allegedly turned out to be spurious with an undisclosed number of borrowers not even aware they had applied for and been granted Pag-IBIG loans.

But Globe Asiatique said it still believed "very strongly" in the soundness of its business plan and model.

"GA still believes that it does still offer an extremely attractive investment for the public and hopes to one day be able to realize its goal of launching a successful IPO on the Exchange," Lee said.

"As such, we are continuing to have discussions with potential private investors at this stage and we envisage reapplying to the Exchange for approval to launch another IPO at a later point in time," he said.

Pag-IBIG, for its part, is now preparing to file charges against Globe Asiatique for alleged fraudulent use of the agency's housing loans. Globe Asiatique, has denied all the allegations, claiming that the company has had an unblemished record with Pag-IBIG Fund.

At the House of Representatives, at least three resolutions have been filed, seeking an inquiry into the housing loan mess. These were filed sponsored by Majority Leader Neptali Gonzales II of Mandaluyong City, Pampanga Representative Aurelio Gonzales Jr. and Cavite Representative Elpidio Barzaga Jr.

Doris Dumlao

September 6, 2010

http://business.inquirer.net/money/topstories/view/20100906-290834/Globe-Asiatique-withdraws-P34B-IPO-as-BDO-resigns-as-underwriter

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