MANILA, Philippines – The bourse told reporters on Wednesday that the PSE panel of directors gave nods on the Cebu Landmasters and Eagle Cement’s decision to raise a maximum of 3.8 billion pesos and 9.2 billion pesos from their starting share trades, respectively.
The Eagle Cement will be the first one. It already had set the amount of shares this day, very much earlier than the slated time offered on the 16th to 22nd of May.
On the other hand, Cebu Landmasters will be announcing the offered amount on May 12, with an offer period set on May 19 to 26.
The two companies will be pinned on the stock exchange’s Main Board. The launching of Eagle Cement is scheduled on the 29th of May and Cebu Landmaster will be on the 2nd of June.
According to the new PSE president and CEO, Ramon S. Monzon, they are commending the two companies because they have complied with the requirements needed in IPO from PSE which allowed them to make use of the stock market for the capital obligations.
The arrival of IPO is very timely because the target Philippine Stock Exchange Index (PSEi) is experiencing a robust foreign trade due to the higher corporate yields and developments in the tax reform programs of the government.
There is an increase in the bellwether index which is 1.74% that extends its year-to-date regain edging up to 14%.
According to Eduardo V. Francisco, the president BDO Capital and Investment Corporation, the potential of the stock offer of Cebu Landmasters is very high with a robust demand because of the arrival of institutional investors.
Michael Gerard D. Enriquez, the chief investment officer in Sun Life of Canada Philippines, Inc., said that they the commending the “cement play” of Eagle Cement considering that the company has been acquiring a lot of market share from the competitors overseas.
Ramon S. Ang, the president and COO of SMC or San Miguel Corporation, is also the owner of Eagle Cement. The company is offering a 500-million worth of main stocks with an over-allotment choice amounting to 76 million minor stocks priced at 16 pesos per piece.
Eagle Cement will use the profit for the partial funds for building the cement plant in Cebu and other facilities related to it.
The company employed PNB Capital Investment Corporation, SB Capital Investment Corporation, and China Bank Capital Corporation as its combined issue managers, book runners, and lead underwriters.
The company projects its shares in the market at 30 percent in Manila, Central Luzon, and in the combination of Laguna, Cavite, Batangas, Quezon, and Rizal. These are three areas in the country that have a 6% contribution to the economy of the Philippines.
Cebu Landmasters, on the other hand, is offering 505 million shares which consist of 430 million main shares and 75 million minor shares with a peak rate of 5.56 pesos apiece. It is also planning to sell 75 million minor shares as a reserve for over-allotment.
The income generated in the deal will go to the debt repayment, working capital requisites, and resource for the land purchases.
BPI Corporation and BDO Capital were hired by the company as their joint lead underwriters and book runners for the IPO.
In a statement, the company said that they are planning to expand more in the regions of Mindanao and Visayas in order to obtain the trust of clients and consumers in the next three years to come. In line with this vision, the company has a 13 standby projects and 16 other for the upcoming developments in the coming years.
Other companies are also waiting for the nod from PSE such as Pure Energy Holding Corporation with 1.58 offered shares and Bermaz Auto BHD with 1.24 billion. They have already gained the go signal from the Securities and Exchange Commission to carry on their plan for an IPO.
Stock Signals Philippines is your go-to website for stock analysis, tips and strategies in trading and investing in the Philippine stock market. StockSignals.ph is a property of Equilyst Analytics, Inc.