Southeast Asia Cement Holdings Inc., the backdoor listing vehicle of nickel ore exploration firm Platinum Group Metals Corp (PGMC), is planning to issue a maximum of 7 billion shares to be able to raise funds to finance its expansion plans.
In a disclosure to the Philippine Stock Exchange (PSE), Seacem said it has submitted a registration statement, for approval by the Securities and Exchange Commission, to issue the shares.
The 7 billion shares to be offered will consist of a primary and secondary offer amounting to 6.16 billion common shares, and an overallotment option of up to 924.72 million common shares.
No valuations and timetable for the offer were disclosed and no officials were available for comment.
Earlier, Seacem chairman Raul Ang said the company “aims to be No. 1” in the next few years after the listing.
With the company’s expansion plans, Ang said Seacem expects to conduct its P10 billion follow-on offering in April next year after the completion of its backdoor listing in the stock exchange.
The backdoor listing of PGMC was done through Seacem’s acquisition of a 99 percent stake in PGMC, where PGMC “will be injected into Seacem and will become a subsidiary of Seacem.” The PGMC acquisition was approved by Seacem’s shareholders during the company’s annual stockholders meeting last October.
As of end-August, PGMC booked P3.9 billion in net income and P8 billion in total revenues.
PGMC has mined 5.5 million metric tons (MT) of nickel ore in the first eight months of the year. This is close to the 6.3 million MT target capacity this year, which is 40 percent higher than the actual 4.5 million MT volume shipments last year.
The company’s nickel ores are exported to China (90 percent) and Australia (10 percent).
PGMC’s backdoor method of debuting to the exchange included the change of corporate name to Global Ferronickel Holdings Inc.
The backdoor listing method enables a company to debut on the exchange via the acquisition of an existing listed company. Listing in this method is cheaper than initial public offerings (IPOs), which require a follow-on offering of shares within 12 months after listing.
PGMC is among the firms eyeing to debut in the stock exchange within the year along recently-held IPOs of Phoenix Semiconductor Philippines Corp. (PSPC), Xurpas Inc., and SSI Group Inc. Company of Friends Inc. (Pro-Friends) had earlier plans of listing this year but has moved its plans for next year due to delays.
Companies that listed in the stock market so far include the listing by way of introduction of Trans-Asia Petroleum Corp., Top Frontier Investment Holdings Inc., and the IPOs of Double Dragon Properties Corp., Century Pacific Food Inc., SSI Group, PSPC and Xurpas.