SEC approves P1.24-B IPO of Mazda PH dealer
MANILA, Philippines – The Securities and Exchange Commission (SEC) approved the P1.24-billion initial public offering (IPO) of Bermaz Auto Philippines Incorporated, the exclusive distributor of Mazda vehicles in the country.
Documents obtained from the SEC showed that Bermaz Auto will offer 155 million primary and secondary shares at an offer price of up to P8 per share.
The offer shares represent 15.6% of the company's total outstanding capital stock after the IPO.
Net proceeds from the sale of primary shares will be used to fund construction of a warehouse and body repair and paint facility, establishment of a training facility for automotive repair and motor services, and construction of showrooms and satellite outlets.
The pricing date for the IPO has been set for March 22.
The expected offer period for the company's maiden share offering has been scheduled from March 27 to March 31, while the listing date has been tentatively set for April 7.
The company hired Maybank ATR Kim Eng as the international and domestic lead underwriter and Abacus Capital as domestic co-lead underwriter.
Bermaz Auto currently distributes a total of 27 Mazda variants to cater to different market segments.
The company is 60.4% owned by Bermaz Motor International Limited of Malaysian conglomerate Berjaya Corporation and 25.5% by listed firm Berjaya Philippines Incorporated.
For the first 6 months of the fiscal year covering May to October 2016, Bermaz Auto reported a net income of P216.2 million, slightly higher than the P199.4 million reported in the same period in 2015. It sold 2,301 units during that period in 2016.
The company began operations on January 2, 2013, with 13 dealerships nationwide. It now has 18 dealerships, 6 of which are in Metro Manila.
Two additional dealerships are under construction in Butuan and General Santos.
Bermaz Auto is the second company to secure IPO approval from the SEC this year. It will also be the first automotive company to be listed on the stock exchange.
The SEC earlier approved the P7.9-billion maiden share offering of Wilcon Depot Incorporated.
The Philippine Stock Exchange has targeted 10 IPOs for 2017. – Rappler.com