MANILA, Philippines – BERMAZ Auto Bhd (BAuto) submits its application for initial public offering (IPO) of its subsidiary in the Philippines, which may take place next semester and total up to P1.24 billion.
Bursa Malaysia, the Mazda distributor in Malaysia and the Philippines, foretold that Bermaz Auto Philippines, Inc. (BAP) attempted for approval from the Securities and Exchange Commission (SEC) to be publicly listed. On Tuesday, the application was sent less than seven days following the BAP’s disclosure of selloff plan relative to its 155 million common shares. The auto distributor plans to tender 15.6 percent of its paid-up and issued capital to the public investors.
According to BAuto announcement in the stock exchange of Malaysia, the 155 million common shares are inclusive of 71.57 million existing shares and 83.43 million new shares. The company added that BAP filed its IPO application on December 13, 2016 with the SEC of the country under the Securities Regulation Code of the Philippines provision.
A similar disclosure was given to the Philippine Stock Exchange (PSE) by Berjaya Philippines, Inc. yesterday. The firm noted that the initial public tender will comprise 29 million common shares, which are more than ten percent of its 25.5 percent BAP stake. Each share would be offered at a highest possible value of P8. Berjaya’s arm in the country will keep its 20 percent portion in BAP, which is composed of over 202.86 million shares following the IPO. It has compensated P178.4 million to obtain its shareholding with BAP.
There will be 42.57 million common shares to be sold by Tan Teck Wah and Terrific Dynamics Sdn Bhd, Bermaz Motor International Ltd., and Prima Merdu Sdn Bhd through the IPO. The given firms are also shareholders of BAP.
BAP aims to be listed on the local bourse’s Main Board and trade its paid-up and delivered share capital following the IPO. Its funds are anticipated to increase around P993.6 million, which are composed of over 993.56 million shares.
The auto distributor has set aside the IPO proceeds for its warehouse and body and paint facility’s construction. Moreover, the finances would be utilized for the development of training facility for motor services and car repair. Satellite outlets and Mazda showrooms construction are also outlined.
BAP solely distributes Mazda cars in the country since its incorporation in the country in August 2012. In the last fiscal years as of April 30, its net income grew from P110.5 million to P366.1 million. In the six-month period ended by October, the firm netted P2.34 billion as contributed by its P216.2 million revenues.