ARTICLE SERVICES            Reprint this article     Print this article       Send as an e-mail     Send Feedback       Comment on this article on our Vox Populi blog     RELATED STORIES   PNOC approves sale of Saudi Aramco's 40% stake in Petron PNOC-EDC profit down 4.2% due to forex losses, sales fall Shares close up on bargain-hunting; San Miguel Brewery gains April BOP surplus up at $499M Banks’ end-February bad loans ratio 4.7%, flat from January Shares close flat after seven-day rally, lack of fresh leads JG Summit Q1 net profit down 61% on forex losses Philex Q1 net profit flat due to forex losses OFW remittances up 9.4% at $1.4B in March San Miguel profit surges on one-time gains First Holdings Q1 profit falls 26% Metrobank profit falls 15% PNB profit jumps 48.4% More Stories » Business Right of first refusal OFW remittances up 9.4% at $1.4B in March Filipino youth still lack passion for entrepreneurship Peso at weakest level so far this year Learning to cope with a single income ‘If advertising won’t raise sales, why advertise at all?’ Japan offers rice to Philippines Fil-Estate, Megaworld form joint venture After stock market routs, can shares become worthless? How to finance and build a dream home Business IMF chief: Worst of financial crisis is over How to finance and build a dream home Banks seen to hike lending by 10%-15% in 2008 Fed chief calls on banks to boost capital, risk oversight Filipino youth still lack passion for entrepreneurship San Miguel says Q1 net profit boosted by asset sales Lopezes move to fend off Meralco takeover Peso at weakest level so far this year Beer in mind Learning to cope with a single income ABS-CBN Broadcasting Q1 net profit drops 14% Philippine National Bank Q1 net profit rises 48.4%   Business Most Read RSS Hottest Tags Stock Activity Markets & Exchanges WHAT'S THIS?                 More >>

MANILA, Philippines – Shares of San Miguel Corp.'s flagship domestic brewery closed at P8.50 (20 US cents) against an offer price of P8.00 per share in an initial public offer (IPO) that valued the company at around $2.9 billion.

San Miguel Brewery, the group's crown jewel, opened at P8.30 per share on its debut and at one point fell to P7.90.

The IPO price was at the bottom of an indicated P8.00-P11.00 price range. Sources said the overseas offer, about 70 percent of the total, was 1-½ times covered while the domestic issue was also oversubscribed.

The IPO price values San Miguel Brewery, the Philippines top beer producer, at 13.7 times forward earnings, still at a premium to the local market, which is trading around 10 times, but broadly in line with regional peers.

San Miguel Brewery, the only big listing scheduled for this year, contributes around 40 percent of group operating profit and posted a 37 percent increase in net profit in the first quarter to P2.5 billion on net sales up 13 percent.

Japan's Kirin holds about 20 percent of San Miguel stock.

($1 = P42.60)

SHARE THIS ARTICLE:

Digg this story

Blink List

Blink Bits

add to my del.icio.us

Reddit

Yahoo MyWeb

• PNOC approves sale of Saudi Aramco's 40% stake in Petron
• PNOC-EDC profit down 4.2% due to forex losses, sales fall
• Shares close up on bargain-hunting; San Miguel Brewery gains

• April BOP surplus up at $499M
• Banks’ end-February bad loans ratio 4.7%, flat from January
• Shares close flat after seven-day rally, lack of fresh leads
• JG Summit Q1 net profit down 61% on forex losses
• Philex Q1 net profit flat due to forex losses
• OFW remittances up 9.4% at $1.4B in March
• San Miguel profit surges on one-time gains
• First Holdings Q1 profit falls 26%
• Metrobank profit falls 15%
• PNB profit jumps 48.4%
• ABS-CBN profit drops 14%; GMA Network’s rises 6%
• Jollibee profit slips 9.4% on increased costs
• Robinsons Land Q2 profit up 27%
• Finance dept fears P12-B loss from proposed tax relief
• Philexim plans P3-B bond sale
• Philippine competitiveness ranking up 5 notches