Mazda car dealer Bermaz seeks P1.24B IPO
Mazda car dealer Bermaz Auto Philippines Inc. has filed an application to launch a P1.24-billion local stock market debut.
Based on its prospectus submitted to the Securities and Exchange Commission, Bermaz plans to sell through an initial public offering 155 million in primary and secondary common shares at a maximum price of P8 per share.
Bermaz, which is affiliated with Malaysian conglomerate Berjaya, has mandated MayBank ATR Kim Eng as its international and domestic lead manager and underwriter for this offering. Abacus Capital & Investment Corp. acts as the domestic co-led underwriter.
Of the total offering, 83.43 million will consist of new common shares while 71.57 million will consist of secondary shares.
Net proceeds from the primary offering amounting to P667.4 million will be used to construct a warehouse, body repair and paint facility. The company will also allot some of the proceeds to establish a Mazda training facility for automotive repair and motor services and likewise construct Mazda showrooms and satellite outlets.
At least 108.5 million or 70 percent of offer shares are being offered to institutional investors and the general public while 20 percent of total will be set aside for trading participants (31 million) and 10 percent for local small investors (15.5 million).
The company has a dividend policy of distributing up to 40 percent of prior year’s net income as dividends, subject to the provision of funds for business plans, operating expenses and other expansion projects.
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