• Ferronickel IPO ‘more than’ P27B

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    Global Ferronickel Holdings Inc., the third largest nickel miner in the Philippines, said its planned share offering to raise funds for expansion is likely to be worth more than P27 billion.

    Dante Bravo, Global Ferronickel executive vice president and corporate finance secretary, clarified in a text message that the company is set to hold a follow-on offering worth “more than” P27 billion likely in March or April.

    “The follow-on offer is near. The amount to be raised is definitely more than the said amount,” Bravo told The Manila Times, adding: “We need it for expansion.”

    A report last week said Global Ferronickel will raise $600 million (P27 billion) from its upcoming offering in March to take advantage of higher prices and exports triggered by a ban on ore shipments from Indonesia.

    The article cited several anonymous sources, saying that the company is in talks with cornerstone investors and is planning to offer 924.72 million shares at a maximum price of P4.38 per share.

    Global Ferronickel was formerly known as Southeast Asia Cement Holdings (Seacem), which became the backdoor listing vehicle of Platinum Group Metals Corporation (PGMC),

    As of end-August, PGMC reported net income of P3.9 billion and total revenues of P8 billion.

    In the first eight months of 2014, PGMC mined 5.5 million metric tons (MT) of nickel ore, which is exported mostly to China and Australia.

    The company has 4,376 hectares of mine reserves in its Surigao site, of which only 217 hectares have been exploited to date.

    Joseph Sy, Global Ferronickel president, also said that the company expects to grow its production capacity to 7.0 to 8.0 million MT next year and 10 million MT in 2016 in line with its expansion plans.

    Besides Global Ferronickel, other IPOs expected in 2015 include those of the Company of Friends Inc. (P7.7 billion), Gweilo Corp. (P75 million) and two other small-cap clients of First Metro Investment Corp., as well as the backdoor listing of National Book Store Inc. via Vulcan Industrial Mining Corp.

    The Philippine Stock Exchange (PSE) sees nine to 10 companies listing on the exchange this year.

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