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EVEN as a growing number of firms had pushed back
plans to sell shares
for the first time to the public, San Miguel Corp.’s domestic
brewery unit said it would push through with its own Initial Public
Offering (IPO), but would have to slash its price range, making the
stock more attractive to bargain-hunters.
Based on documents submitted to
the Securities and Exchange Commission (SEC), the newly spun-off San
Miguel Brewery Inc. (SMB) cut its price range from P9.50 to P16.30
per share to P8.00 to P15.40 each. The downgrade would reduce its
potential proceeds from the share sale to P23.855 billion against
the original target of P25.246 billion. Part of the funds raised
would be used to help the parent company’s diversification into
the power, mining, infrastructure and utilities businesses.
About 70 percent of the shares
offered would be sold to foreign investors while the balance would
be sold to domestic buyers from April 10 to 16. SMB plans to list in
the local bourse on April 22.
CitiGroup Global Markets Ltd. and
ATR KimEng Capital Partners Inc. were tapped as joint coordinators,
book runners and lead managers for the capital raising exercise
while ATR KimEng and BDO Capital and Investment Corp. would handle
the domestic side of the offering.
In a text message, Eduardo
Francisco, BDO Capital president, said that the price adjustment is
a way of “just widening [the] range given [the] uncertainties”
in worldwide markets arising from a possible US recession.
Earlier, BayanTrade Inc., a joint
venture among leading local conglomerates, said it would also brave
the volatile markets by selling 29 million common shares equivalent
to 36.9 percent of total company shares. Estimated proceeds from the
share sale are pegged at P122 million at a minimum price of P4.21
each.
Pepsi Cola Products Philippines,
Inc. was the first company to hold an IPO this year despite the
uncertainties. The soft drink maker, however, likewise had to cut
its offer price range. After it listed at the local bourse, the
company’s share price sunk below its offer price.
--Likha C. Cuevas-Miel
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