Century Pacific Food Inc. (CNPF) Tuesday debuted strongly at the local stock market as investors cheered the listing of a new Philippine consumer company with strong growth prospects.
CNPF shares rose by 11.94 percent to P15.38 a share during morning trade from the initial public offering price of P13.75 a share.
“It’s flattering that the market has responded this way,” CNPF president Christopher Po said during a briefing after the listing ceremony.
On earnings prospects, Po said, the company believes it will hit the higher end of stock market analysts’ P1.1- to P1.5-billion net profit forecast for the company this year.
A potential bottom line level of P1.5 billion translates to a return on equity of about 24 percent for the company.
The offering was oversubscribed by 3.5 times the base offering. Up to 70 percent of it was taken up by institutional investors as a deliberate strategy to ward off weak hands. Industry sources said among those that had subscribed to the IPO were state-owned Government Service Insurance System and Sun Life of Canada.
The IPO was underwritten by the investment units of Banco de Oro, Metropolitan Bank and Trust Co. and Bank of the Philippine Islands.
“I’m happy to see CNPF trade at these levels on its debut. Investors are hungry for good stocks and this food company is giving nourishment,” said Gus Cosio of First Metro Asset Management Inc.. “In the long run, we can expect even better days for CNPF.”