San Miguel Brewery lowers price of IPO scheduled in April
Thomson Financial
First Posted 17:56:00 03/12/2008
Filed Under: Financing, Stock Offerings
MANILA, Philippines -- San Miguel Brewery Inc. (SMBI), beer unit of San Miguel Corp., has lowered the price of its initial public offering scheduled for next month, a regulatory filing showed Wednesday.
SMBI now expects to raise up to P23.9 billion from the IPO, down from the previous estimate of P25 billion, based on the new indicative price of from P8.00 to P15.40 per share.
In its initial filing, SMBI was looking to sell up to 1.5 billion shares at between P9.50 and P16.30 per share.
Based on the revised IPO terms submitted to regulators, SMBI now plans to sell between 770.5 million and 1.55 billion common shares, or 5.0 to 10 percent of the shares to be listed.
The offer will comprise up to 154.9 million new shares and up to 1.39 billion shares currently held by San Miguel, Southeast Asia's largest food and drinks conglomerate.
Despite the continuing volatility in equities markets due to worries about the faltering US economy, SMBI plans to hold roadshows from March 28 up to April 6 for the IPO, with the final offer price to be fixed on April 9.
The offer period will run from April 10 to 16, and listing on the Philippine bourse is tentatively set for April 22.
Citigroup Global Markets Ltd. and ATR Kim-Eng Capital Partners have been tapped as bookrunners and lead managers.
SMBI posted a 9.4 percent increase in net profit in 2007 to P8 billion.
Net sales grew 8.8 percent to P44.1 billion.
San Miguel, which is 20 percent owned by Japanese brewer Kirin Holdings Co Ltd.,
is also planning to hold a separate IPO for its packaging business.
San Miguel is expecting to raise up to P21.5 billion from SMBI's IPO, which will be used to fund its foray into energy and mining. The rest of the proceeds will go to SMBI.
Shares in San Miguel rebounded Wednesday following recent losses, with it’s a shares, reserved for Filipinos, up P1.00 or 2.6 percent at P39.50. Its B shares, which have no ownership restriction, advanced P1.00 or 2.6 percent to close at P40.00.
The Philippines' benchmark index was up 1.5 percent, tracking strong gains in the US and other Asian markets. (By Enrico dela Cruz)
($1 = P41.35)
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