Bermaz Auto Philippines (BAP) Inc or “Mazda Philippines” has applied to go public yesterday, filing to the country’s Securities and Exchange Commission (SEC) its initial public offering (IPO) set at $3.1 million (P155 million).
Based on an earlier disclosure by BAuto, BAP filed its IPO application on December 13, seeking to offer 155 million common shares priced at P1.00 apiece, representing 15.6 per cent of BAP’s enlarged issued and paid-up share capital.
BAP’s IPO proposal involves 83.43 million new shares and 71.57 million existing company shares to be sold by shareholders.
Upon successful completion of its IPO, BAP proposes to list and trade its entire enlarged issued and paid-up share capital of P993.5 million, comprising 993.5 million BAP Shares on the main board of the Philippine Stock Exchange (PSE).
According to BAuto, the proposed listing is expected to unlock shareholders’ value in BAP and provide a transparent valuation benchmark for the Mazda automotive business of BAuto in the Philippines.
“With the proposed listing, BAP will have direct access to the equity capital market in the Philippines which will enable it to have greater capital management flexibility,” BAuto said in its statement.
BAuto added the listing will also enable BAP to gain recognition and enhance its corporate stature through its listing status on PSE’s main board.
BAP plans to use the IPO proceeds for the construction of a warehouse and body and paint facility, establishment of a training facility for automotive repair and motor services, and construction of Mazda showrooms and satellite outlets.
Formerly Berjaya Auto Philippines Inc, BAP assumed its present name Bermaz Auto Philippines last September 2016. It was established in August 2012 as a private limited company.
BAP became the new distributor of Mazda in the Philippines on January 1, 2013. Its major shareholders are Bermaz Motor International Ltd (BMIL), an indirect subsidiary of listed holding firm Berjaya Philippines Inc, and major Malaysian conglomerate Berjaya Corporation Berhad. BMIL is the Mazda distributor in Malaysia.
Besides BMIL and Berjaya Philippines, selling shareholders for BAP’s IPO debut are Prima Merdu Sdn Bhd, Tan Teck Wah, and Terrific Dynamics Sdn Bhd.
Maybank IB has been appointed as principal adviser to BAuto for the proposals, while Maybank ATR Kim Eng Capital Partners Inc is the international and domestic lead manager and underwriter to BAP for the proposed listing.
The proposed IPO and listing are expected to be completed by the first half of 2017.