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

FILE PHOTO - A logo of San Miguel Corporation (SMC) is seen at a main office in Ortigas city, metro Manila February 12, 2016. REUTERS/Romeo Ranoco

Philippine conglomerate San Miguel Corp said it is looking to raise about $920 million through a sale of shares in its food unit, slashing the size of the offering by almost half due to weakness in the stock market.

The sale of a minority stake in San Miguel Food and Beverage is part of the parent firm’s restructuring plan that was announced in August 2017.

In a regulatory filing to the stock exchange, the food unit said San Miguel is seeking to sell a total of 523 million shares in a price range of 85 to 95 pesos per share.

This excludes an over-allotment option of up to 15 percent of the offering.

The price range compares with regulatory filing figures of up to 1.02 billion shares on offer and of up to 140 pesos per share, a premium of about 75 percent to the unit’s trading price at the time of the announcement of the plan

While regulatory filing prices are often set far above expected bookbuilding ranges in the Philippines, it is not common for the number of shares on offer to be cut.

Earlier on Thursday, San Miguel President Ramon Ang offered varying statements to reporters about potential pricing, saying both that the shares could be priced at 90 to 100 pesos and that they could be priced between 85 and 100 pesos.

“Weakness in stock markets has put further pressure on the pricing,” said one source, who did not wish to be identified as he was not authorised to speak to the media.

San Miguel plans to use proceeds from the share sale to invest in its business, but it did not provide details. The conglomerate is pursuing an aggressive expansion plan that involves venturing into infrastructure, mining, petroleum and power generation to boost revenues.

Also Read:

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San Miguel to invest $1b in new breweries as Philippine beer demand grows

Reuters

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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.