SEC approves P10.5B of IPOs, follow on offering

MANILA, Philippines – The Securities and Exchange Commission (SEC) approved en banc 3 initial public offerings (IPOs) and a follow on offering totaling P10.52 billion ($235.06  million*).

SEC has approved the maiden offerings of Rustans-led specialty retailer firm SSI Group Inc., (P7.45 billion; $166.46 million); mobile content provider Xurpas Inc., (P1.44 billion; $32.18 million); and Korean semiconductor producer Phoenix Semiconductor Products Corp. (P1.51 billion; $33.75 million), SEC director for market regulation Vicente Graciano Felizmenio Jr. said.

The follow on offering of fruits producer Del Monte Products Inc. (P125 million; $2.79 million) was also approved by the commission.

SSI Group Incorporated, which handles the Rustan’s Group’s retail operations, said in a statement that the IPO could raise as much as P6.5 billion ($145.25 million) on 864.2 million shares to be sold at a maximum of P7.50 ($0.17) each.

Approximately 80% will consist of primary shares to be issued by the SSI Group and 20% shall be secondary shares from existing shareholders. Should the over allotment option for 129.6 million shares be fully exercised, the IPO could raise as much as P7.45 billion ($166.51 million), totaling to 993.9 million shares.

SSI Group said it would use majority of the proceeds to fund the expansion of its FamilyMart convenience stores and the Wellworth department stores and repay current debts.

Meanwhile, Korean semiconductor firm Phoenix is finally pushing through with its IPO.

However, Phoenix reduced the number of shares to be offered from up to 572.186 million common shares to 267.020 million shares with an over subscription of 134.186 million shares. The shares will still be sold at P3.76 ($0.084) each.

Xurpas Inc., one of the country’s largest independent mobile consumer content providers, is also planning to raise P1.44 billion ($32.17 million*) in proceeds from the sale of 344 million common shares at an offer price of P4.19 ($0.094) per share. The offer accounts for 20% of the total outstanding issued common shares of the company.

Meanwhile, Del Monte is raising P125 million ($2.79 million) through sale of 5.5 million common shares at an offer price of up to P22.84 ($0.51) per share.

To date, two companies have already conducted IPOs this year – DoubleDragon Properties, Inc. and Century Pacific Foods Inc.

On the other hand, Top Frontier Holdings Inc. and Trans Asia Petroleum Corp. were listed through introduction or without public offering. – Rappler.com

($1 = P44.75)