The local bourse has given its go-signal to the planned initial public offering (IPO) of microfinace firm AG Finance Inc.
In a meeting, the board of directors of the Philippine Stock Exchange approved the application of AG Finance for the initial listing of up to 261.82 million common shares with a par vale of P1 a share under the main board of the exchange.
A memorandum posted at the website of the local bourse also specified that the offer period will now take place from July 30 and will end on August 5, instead of July 29 to August 2, which was the previous offer period set by the firm.
The listing date of AG Finance shares in the PSE was also moved to August 13 from the original listing period of August 9. Estimated gross proceeds is at P130 million to P149 million.
AG Finance, earlier this month, obtained the approval of the Securities and Exchange Commission (SEC) for its IPO.
“The net proceeds that will be received from the offer will be used to finance the company’s professional and skilled OFW [overseas Filipino workers]loan portfolio expansion program, and repayment of outstanding loans with China Banking Corp. amounting to P37 million,” the SEC filing stated.
According to AG Finance, the China Banking loan carries an interest rate of 6 percent
per annum maturing in July 2013, and was used by the company to finance working capital requirements.
AG finance is one of the major players in the microfinance and consumer loans industry. In 2003, AG Finance expanded its market coverage to include professionals and skilled workers in North America and the Middle East.
AG finance is the fourth company that will listed at the PSE this year and the third to do an IPO.
Madelaine B. Miraflor