Philippines’ San Miguel further trims F&B unit’s IPO size, eyes $634m

FILE PHOTO: A trader walks past the electronic board of the Philippine Stock Exchange in Makati city, Metro Manila, Philippines June 27, 2016. REUTERS/Romeo Ranoco

San Miguel Corp, the Philippines’ largest company, is seeking to raise a mere P34 billion (about $634 million), less than half of its original target, through a sale of shares in its food unit after pricing the shares at the bottom of an indicative selling range.

In a disclosure to the Philippine Stock Exchange on Thursday, the conglomerate said it will offer 400.94 million common shares in San Miguel Food and Beverage Inc at a price of P85 ($1.6) per share, the low end of the P85-95 price range it set last week.

This excludes an over-allotment option of up to 60.14 million common shares or 15 per cent of the offering.

The move marks yet another trimming of the IPO size by San Miguel Corp. In an amended filing last week, the company said it had slashed by a half the total number of shares it intends to sell to 523 million at a range of P85 to P95 per share due to weakness in the stock market.

The latest disclosure showed that the company further cut the size to 400.94 million, or less than half of its original plan to sell up to 1.02 billion shares for up to P140 ($2.6) per share, a premium of about 75 per cent to the unit’s trading price at the time of the announcement of the plan.

“Payment and delivery of the offer shares shall be on November 12, 2018,” per a company disclosure. San Miguel plans to use proceeds from the share sale to invest in its business, but it did not provide further details.

The original plan could have made the offering, at P142.8 billion ($2.7 billion), the biggest-ever secondary offering in the country, whose market has been considered Southeast Asia’s worst so far this year after falling 15 per cent.

In September, consumer tech firm Cal-Comp Technology (Philippines), a member of the Taiwanese technology conglomerate New Kinpo Group, decided to delay its P6.77 billion ($125 million) IPO due to market conditions.

Cal-Comp added that it will resume its IPO “at an appropriate time in the future” depending on overall market conditions.

In June, the Philippine unit of Campos-led Del Monte Pacific Ltd deferred its listing, citing volatile market conditions. The P17.55 billion (about $333 million) offering would have been the first IPO of the year for PSE.

The local unit of AirAsia Group Bhd, Southeast Asia’s biggest budget airline, also said last month that its IPO could be pushed back to mid-2019 due to high fuel costs and other factors. The company hopes to raise more than $250 million from the listing.

The Philippines, however, is not the only market in Southeast Asia that has seen shelved IPOs so far this year. According to a Bloomberg report, Singapore’s bourse also had its share of delayed listings.

Also Read:

Philippines’ San Miguel halves food unit IPO size, seeks $920m

San Miguel’s F&B unit seeks to raise $2.7b in share sale

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.