To approve PSE-PDS merger
The initial public offerings of Philstocks Financial Inc. and D.M. Wenceslao & Associates Inc. won’t happen this year but in 2016, according to the Securities and Exchange Commission (SEC).
“Philstocks and Wenceslao [IPOs] are deferred,” Arman Pan, SEC acting corporate secretary, said in Filipino. “Marami na kasi. Hindi naman nagmamadali ‘yang mga ‘yan. [There are already a lot. The two are not really in a hurry].”
D.M. Wenceslao intends to raise P21.7 billion from a maiden share sale while Philstocks is eyeing P185.89 million.
In a special meeting last Thursday, the SEC approved the P242-million IPO of property developer Italpinas Development Corp. (IDC) .
IDC is the sixth IPO approved by the SEC, following Crown Asia Philippines Corp., SBS Philippines Corp., Gweilo Corp., Metro Retail Stores Group Inc., and Datem Inc.
Metro Retail was already approved the Philippine Stock Exchange (PSE) and SEC, while Gweilo and Datem have yet to receive the green light from the PSE.
Pan said the PSE and SEC held an immediate meeting in Makati City last Thursday “to take up IPO matters,” which include the approval of some IPOs in the pipeline and the IPO plans of Philstocks and D.M. Wenceslao.
Other IPOs to be approved by SEC and PSE are Green Power Panay Philippines Inc., Philippine Primark Properties Inc., Pointwest Technologies Corp., and Pilipinas Shell Petroleum Corp.
Earlier, PSE Chief Operating Officer Roel Refran said they are “realistically” looking at “two to three” more IPOs for the rest of the year, while the others that the SEC will approve for the rest of 2015 will be carried over for next year, mostly in the first quarter of 2016.
Meanwhile, the SEC officials said the planned merger of the PSE and Philippine Dealing Systems Holdings Corp. (PDS) could get the regulatory approval at the end of November.
“We plan [to approve the merger]on November 27. We still have the whole of November [to do it],” Pan said, noting the SEC meeting last Thursday was canceled to give way to PSE and SEC discussions on IPOs.
The PSE is requesting an “exemptive relief” in acquiring PDS, which would pave the way for the PSE to own up to 100 percent of PDS.
The SEC earlier noted it was carefully studying the merger to avoid post-acquisition problems.
The PSE intends to acquire 100 percent of PDS for P2.25 billion, in line with its vision of consolidating the equity and bond trading into a single platform.
PDS operates the Philippine Dealing Exchange Corp. (PDEx), which serves as the trading floor for fixed-income securities and currencies.
The PSE is still in the process of acquiring the interests of Singapore Exchange Limited and minority shareholders in PDS.
The exchange already owns 53 percent of PDS after acquiring a 3.08 percent stake from Finex Research and Development Foundation Inc. for P69.39 million.