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Cebu Pacific to conduct IPO

Roy — Tue, 09 Mar 2010 14:03:32 +0000

Cebu Pacific has announced last Monday of its plan to sell new shares to the public to raise funds of about P12 billion. The announcement was made by Cebu Air Inc., the company that operates the Cebu Pacific Airline.

The company said it planned to list 125.25 million new common shares through an initial public offering (IPO). The new shares are valued at close to P12 billion, with the maximum offer price set to P95 each by the company. It was actually in 2008 when Cebu Pacific planned to go public, but decided to postpone it then because of the jittery market conditions at the time.

Aside from its planned IPO, Cebu Air also said it asked the Securities and Exchange Commission to approve their listing for additional 110 million existing shares at the same price. The company said it wants to list the 35.33 million shares owned by Cebu Pacific’s parent company JG Summit Holdings Inc. “subject to the over-allotment option granted to the stabilizing agent under the same terms and conditions as the primary and secondary offer.”

In addition, as part of the company’s employee stock option plan, an additional 18.4 million shares will also be listed at a 25-percent discount to the IPO price.

Cebu Pacific said that the company would offer the shares primarily to international institutional investors, even though it would be listed on the local bourse. JG Summit vice president for finance Bach Johan Sebastian justified the move by saying, “There is not enough capital available in the country for an offer of this size.”

Sebastian said the figures were only indicative and did not necessarily mean that this would be the exact amount the company wanted to raise. “We just had to put a nominal value in our request, but that does not mean that we are targeting to raise that amount,” he said.

There is still no stated date as to when the company plan to conduct its IPO. The proceeds of the IPO would be used by the company for its continuing expansion plans.

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Online gaming company gets listed in the PSE

Roy — Thu, 18 Feb 2010 01:25:23 +0000

Philippine online gaming publisher IP E-Game Ventures Inc. (IP E-Games) was finally listed in the Philippine Stock Exchange (PSE). The company held its listing ceremony at the PSE last Wednesday. IP E-Games is the first online gaming company to be listed in the PSE.

A subsidiary of technology firm IPVG Corp., IP E-Games was able to get approval on an initial introduction of 33,545,554 common shares from the Second Board of the PSE last February 1, 2010. The company’s stocks, listed under the symbol “EG” on the PSE board, will be traded at an indicative reference opening share price of P50 each.

IP E-Games Chief Executive Officer Enrique Gonzales said after the formal listing ceremony, “The listing does a lot for the company. This raises the bar in terms of how we interact with our stakeholders namely our public investors. It gives us access to capital market and it establishes a clear validation for the company.”

He added, “I think what that means for our gamers, what that means to the online gaming industry in the Philippines is we are now positioned to access funds from the capital market and we are going to invest those funds in building up the online gaming industry in the Philippines.”

IP E-Games is the publisher of popular Massively Multiplayer Online Role Playing Games (MMORPGs) CABAL Online and RAN Online, and also the beat game Audition Dance Battle.

The company is not yet required to go through an initial public offering because it was listed by way of introduction, but PSE regulatory requirements mandate that companies who enlist should conduct a public offering and conform with the minimum public ownership requirement within 12 months.

Gonzales said they are planning to hold their public offering on the third or fourth quarter of the year. He believes that upcoming elections would give a “tremendous boost to the local economy.” “Plus, there is a sense of optimism once new leadership has been elected,” he added.

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Watch out for SMEC’s IPO

Roy — Sat, 05 Sep 2009 03:53:38 +0000

The energy investment arm of food and beverage giant San Miguel Corp., the San Miguel Energy Corp. (SMEC), will be conducting an initial public offering (IPO) within the next three years. This has been confirmed by San Miguel president Ramon S. Ang who said that they will definitely keep a 51% interest in SMEC in spite of the IPO. The proceeds of the IPO will be used to fund the activities and work programs of the energy company, Ang said.

SMEC has just recently acquired an independent power producer administrator (IPPA) contract â€“ the 620-megawatt combined cycle power plant in Limay, Bataan, through a negotiated sale from Power Sector Assets and Liabilities Management (PSALM) Corp.

Currently in the thick of expansion and conversion plans for its recently acquired power generation asset, Ang said SMEC will invest at least $350 million in converting the plant into a compressed natural gas (CNG)-fired facility. Currently, the company is in talk with several CNG suppliers from Indonesia, Malaysia, Qatar and Middle East.

In the same week in acquired the Bataan plant, SMEC also bagged the contract to manage the independent power producer (IPP) contract for the 1,000-MW Sual coal-fired power plant in Pangasinan, through a bidding conducted by PSALM.

Ang said the company is focusing on its energy and power business. It aims to increase the contribution of its power and energy investments to 25 percent of the parent firmâ€™s annual earning. Earnings from its food business should now be about 10 to 20 percent of the total, while telecom should be 30 percent. â€œWe want to be the top conglomerate, the most diversified with the biggest sales revenue,â€ he said.

â€œFor our power business, as much as possible, we want it to run on renewable energy. However, for the Sual (facility) which is a coal-fired plant, the question is how to make it environmentally friendly,â€ Ang added.

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San Miguel to get packaging unit listed

Roy — Thu, 14 May 2009 05:54:34 +0000

One of the countryâ€™s leading company, the San Miguel Corp. is planning to list its packaging arm in order to raise more funds, as the beer-based group is getting ready to branch out into heavy industry, according to Dow Jones Newswires. San Miguel president Ramon Ang told Dow Jones that the initial public offering for between 10-14 percent of the unit should be able to raise about $100 million for the company.

Ang also disclosed that included in their plan is to complete the previously announced sale of its international beer brand to its listed subsidiary San Miguel Brewery, Inc.Â The brandâ€™s value, Ang said, is between $600-$700 million. San Miguel controls the brewery with Japanâ€™s Kirin as minority partner.

In their disclosure statement to the Philippine Stock Exchanges (PSE), San Miguel Corp. told the PSE that it is now evaluating the â€œappropriate timeâ€ to exercise an option agreement it signed last year to acquire a controlling stake in the countryâ€™s top refiner Petron Corp. San Miguel also obtained a significant stake in the countryâ€™s top power distributor, Manila Electric Co. (Meralco).

San Miguel Corp. also reported that its real estate arm, the San Miguel Properties Inc. (SMPI) has seen its net profit as of 2008 rise 220 percent to P1.2 billion ($25.14 million) in spite of an â€œoverall softening of the real estate marketâ€ last year. SMPI said, while a â€œsubstantial increase in saleâ€ of residential products was realized last year, the bulk of the net income came from the disposal of an industrial property and a minority stake in another real estate firm.

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Union Bank to sell notes to raise P5B

Roy — Wed, 29 Apr 2009 04:54:42 +0000

Union Bank of the Philippines is also planning to sell debt notes in its effort to generate up to P5 billion which it needs to be used as supplementary capital to support the growth of its resources. This was disclosed to by Union Bank president Victor ValdepeÃ±as as he informs the Philippine Stock Exchange that the bankâ€™s board has already approved the issuance of unsecured subordinated notes. The offering will be done as soon as Bangko Sentral ng Pilipinas (BSP) gives its nod to the bank.

ValdepeÃ±as said that they are already preparing the offering although they havenâ€™t selected any underwriter yet. The notes, which are classified as â€œlower tier 2â€ capital will be an interest-bearing note, and are only subordinate to the claims of the bank depositors and senior creditors.

The tier 2 notes will have a tenor of 10 years, with Union Bank having an option to redeem them on the fifth year. But if the bank opts not to exercise the call option, it will have to pay higher or â€œstep-upâ€ rate from the sixth year onward.

The notes will be issued as soon as possible, according to ValdepeÃ±as, to cope with the fast expansion of its balance sheet. â€œLending has been very strong both on the consumer and corporate side particularly as we get involved in big-ticket items like power and infrastructure. Because of the very fast growth in our resource base and increase in our loan resources, we need to make sure we are continually above the capital adequacy ratio (CAR),â€ ValdepeÃ±as said.

Union Bankâ€™s deposit base rose by more than 60 percent last year, according to ValdepeÃ±as, which is the fastest in the industry, in spite of the lingering global financial turmoil. He said, â€œThat means we need to buy assets and some of these assets will have an impact on our CAR.â€

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Shell holding off its IPO plan for this year

Roy — Fri, 24 Apr 2009 05:04:14 +0000

Major oil company Pilipinas Shell Petroleum Corp. is still not eager on engaging on initial public offering (IPO) this year. Edgar Chua, Shell country chairman stated their company still has no concrete plan concerning the IPO as the climate for capital raising exercise is not yet conducive as of this time. Chua, who has been receiving frequent orders from the Department of Energy (DOE) regarding the IPO, said that they will try to have a concrete plan by the third quarter of this year.

Chua admitted that the plan concerning the IPO is tied to the refinery expansion program which is still being finalized by the company. He also said that by the looks of it, and at the rate things are going, they may have to â€œput on hold the IPO plan indefinitely.â€ The IPO plan is part and parcel of the overall refinery operations of their company, he added.

The Shell executive also said that they cannot decide about the IPO until such time the results of the refinery upgrade review is concluded. DOE secretary Angelo T. Reyes has ordered Shell to submit its IPO plan in August last year.

Reyes reminded the company that under Sec. 22 of the Downstream Oil Industry Deregulation Act of 1998, â€œany person or entity engaged in the oil refinery business shall make a public offering through the stock exchange of at least 10 percent of its common stock within a period of three years from its effectivity.

The energy secretary however emphasized that the three-year period under the said law is not mandatory, it should rather serve as a guideline on how the oil companies should make their IPO plans. But Reyes stressed that the 10-year period since the passing of the law is too long for Shell to implement the public offering of 10% of its common stocks.

Reyes said that the law was passed to liberalize and deregulate the downstream oil to ensure a competitive market under a regime of fair prices of adequate and continuous supply of environmentally clean high quality petroleum products.

There are two oil refiners in the country, namely Shell and Petron. Petron was listed in the stock exchange way back in 1994, before the oil deregulation law was passed. Petron was then jointly-controlled by the government through Philippine National Oil Co. (PNOC) and Saudi Aramco, the worldâ€™s largest oil producer.

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Pacquiao is Now a Gasoline Station Owner

PinoyBusiness — Tue, 10 Mar 2009 19:53:29 +0000

The Philippine boxing hero Manny â€œPacmanâ€ Pacquiao has added yet another title to his name and that is being a gasoline station owner, as he is the dealer partner of the Phoenix Petroleum Philippines, Inc.â€™s 100th gasoline station which opened recently in General Santos City.

Phoenix president and chief executive Dennis Uy said that Pacquiaoâ€™s confidence in the Phoenix makes him an ideal and true business partner. â€œWith him and other dedicated dealer partners with us, Phoenix will continue to make â€˜Phoenix Fuels Lifeâ€™ an experience within reach of every Filipino,â€ Uy added.

Pacquiao, for his part, is proud of the Davao-based Phoenix and is more than happy to be associated with them. Pacquiao said in a statement, â€œI was impressed with Phoenix because in just a short time, they have grown fast. As a Mindanaoan, I am proud of the successes of Phoenix which is now expanding nationwide. I am confident of the company and its future thatâ€™s why I decided to be one of their increasing business partners.â€

Together with actress Marian Rivera, Pacquiao is also the endorser of Phoenix Fuels. This partnership between Pacquiao and Phoenix dates back in 2006, Phoenix was behind Pacquiao as he successfully defeated Mexican Erik Morales. Once again, when Pacquiao defeated boxing legend Oscar de la Hoya in December 2008, Phoenix was in full support of Pacman.

Most of the 100 stations of Phoenix are in Mindanao, six were opened in Luzon in Marikina, Cabanatuan, Canlubang, Cavite, Pangasinan and Zambalesâ€¦ all in a span of three years.

Part of the companyâ€™s expansion plan this year includes the investment of P500 million for its retail networking, and a projected opening 101 stations this year, which will bring to 200 the total stations of the company.

Presently, Phoenix is the process of finishing the construction of its 45-million liter storage depot and terminal facility at the Batangas Union Industrial Park in Calaca, Batangas this quarter.

Phoenix was listed on the Philippine Stock Exchange in July 2007, making them the first petroleum company to do so since the 1998 Downstream Oil Deregulation Act was passed.

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Transferring Shares in the Philippines

PinoyBusiness — Tue, 30 Dec 2008 16:57:48 +0000

In the Philippine corporate world, shares of stock are traded and transferred everyday from one hand to another, whether in the stock exchange by public trading, or through private transactions. We are going to discuss transfer of shares not traded nor listed in the stock exchange.

First off, certain documentary requirements need to be met in order for the transfer of shares of stock to be valid. This depends if the stockholder is in possession of the actual stock certificates whereby he can simply deliver and endorse the same to the transferee. This transaction has to be recorded in the books of the corporation in order for third parties to be bound by such transaction. No deed of assignment is required in this particular scenario; such document is only required in the event that no certificate of stock has yet been issued or where the same is not in the possession of the transferor.

For such transfer to be valid as against third parties and the corporation, it must be recorded in the corporate books. This is important in cases where there is a question as to who has the right to dividends coming from such shares of stock. If a corporation is not duly notified of such transfer, it is only liable to the original stockholder and not the transferee. But in such case, the transferor is deemed the trustee of the real owner of the dividends and thus obligated to turn it over to the transferee.

As regards payment of capital gains tax assuming that there was a gain, non-payment thereof does not affect the validity of the transaction as between the parties thereto. However, in order for the transfer of shares to be registered in the books of the corporation, BIR rules dictate that capital gains tax be paid first.

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Renewable Energy as an Investment Top Countries

PinoyBusiness — Wed, 26 Nov 2008 15:21:55 +0000

Several people have invested into the clean, renewable energy in recent years. During the year of 2007, global wind energy capacity grew by 27% and solar energy sales grew an estimated of 50%.

A report coming from the Ernst & Young offers insight into where future growth is likely to occur by examining a variety of indices including long-term wind, near-term wind and all renewables. These are top five prime nations for renewable energy investment:

1. United States
United States has particularly on the top where onshore wind, solar and infrastructure. The sheer size of the country provides an advantage with abundant wind, solar, and agricultural resources. It is the 2nd place for installed wind energy capacity and 4th place for total installed solar PV capacity.

2. Germany
Despite a taking second place, Germany overcomes US in the offshore wind, solar and biomass. German Legislation includes feed-in-tariffs guaranteed rate for electricity generated from solar energy. Germany was the leading nation for both wind and solar energy and became the leading solar PV producer in 2007.

3. India
Just behind Germany, India scores high for onshore wind and infrastructure, but lags considerably behind the U.S. and Germany for its offshore wind. India sees the considerable growth in hydropower, with plans for 143 projects totally 20 GW of generation capacity. India is coming forth being the highest capacity for wind energy.

4. Spain
United Kingdom and Spain both tied for the forth place but Spain scored well for onshore wind and solar energy and much lower in the offshore wind energy. The Spanish government recently boosted the solar industry by agreeing to subsidize the first solar capacity installed. Spain ranked 2nd after Germany for new solar PV installations in 2007 and a third placer just behind the US for the total installed wind energy capacity.

5. United Kingdom
United Kingdom has the highest score in offshore wind but had a weak score for solar energy. The requirement to generate 15% of electricity from eligible renewable resources by 2015 has fueled the renewable obligation certificates market.

So there is no Philippines in the list. Don’t wait for our government. Let’s act on ourselves and innovate and act on it.

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Yehey IPO

PinoyBusiness — Fri, 08 Aug 2008 13:48:05 +0000

Because of this Yehey.com is postponing its plans to for an initial public offering. They are not the only company that has withdrawn its IPO plan, Cebu Pacific also shelved its planned IPO because of the current market condition. “Stock market conditions haven’t changed and remains at its all-time low. We deem that prospects are not good for us to list at this point in time,” these were the words of Donald Lim, Yehey’s chief executive.

Currently, Yehey is under publicly listed iVantage Corp, who owns 80% of the companyâ€™s stake while the rest is owned by individual shareholders. It is their way of introducing themselves in the bigger market as a company. Once the market situation stabilized, Lim said they will push through with the planned IPO.

One of the countryâ€™s longest-existing Internet portal, Yehey was established in 1996 and has since evolved from content services to online advertising and reselling Google and Yahoo ad spaces to local market.

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Cebu Pacific IPO Update

PinoyBusiness — Fri, 08 Aug 2008 09:43:00 +0000

Poor market performance has caused Cebu Pacific to finally shelve its planned IPO. It was supposed to list $309-million in IPO this year but eventually has decided against it because of the current market situation. â€œIt (IPO) is shelved,â€™ Lance Gokongwei, President and CEO of Cebu Pacific, told reporters, he said that the airline instead will resort to loans and other internal income-generating activities to meet financing requirements. â€œIn this environment, nobody is going to marketâ€ he added.

With around 47 share of the domestic market, Cebu Pacific flies to 24 cities locally and to 16 cities in Asia. And one of its reasons for generating funds is its plan to increase to 25 its current fleet of 20 aircraft.

Established as Cebu Air in 1988, it was subsequently acquired by JG Summit Holdings. Initially started with 24 domestic flights daily in Metro Manila, Davao City and Metro Cebu. Growing its operations to about 80 daily flights to 18 domestic destinations by the end of 2001.