Ten firms set to go public

Manila Times
http://www.manilatimes.net/national/2006/jan/11/
yehey/business/20060111bus8.html

Wednesday, January 11, 2006

Ten firms set to go public

By Cai U. Ordinario, Reporter

THE Philippine Stock Exchange expects 10 firms to sell their shares to the public this year, based on reports of underwriters that were submitted to the bourse.

Francis Lim, PSE president, told reporters that a survey among underwriters conducted by the bourse confirmed that an estimated 10 listings are in the pipeline for 2006.

Besides the initial public offerings of the Lopez-led First Gen Corp. in February and broadcast network GMA 7 within the next six months, the listings include Carmen Copper Corp. and an exporter, which Lim refused to identify.

Lim said the exporter may go public in the second quarter and expects to raise around P250-million to P300-million worth of proceeds.

Once its shares are publicly traded, the company will be included in stocks traded in the PSE’s second board.

While the unidentified company initially wanted to list in Thailand because of its involvement with firms based there, it nevertheless decided to sell its shares in the PSE instead.

Lim said the PSE remains confident that the market can absorb these initial public offers since players still have funds to invest in stocks.

“Money is being channeled by the private banks to be invested abroad. That is the challenge for the PSE. We have to work harder, so that this money will find its way back,” Lim said.

First Gen will offer 275.5 million to 360.9 million common shares to the public at a range of P51 to P74 each. The company expects to raise P11.2 billion in gross proceeds from the primary IPO, of which P10.7 billion will represent net proceeds.

A portion of the net proceeds will be used to fund its future projects, including its plan to bid for electric plants that state-led National Power Corp. will be selling.

Meanwhile, GMA 7, is mulling to increase its issuance to P5-billion worth of shares for its IPO. In its concept paper, the network intends to undertake an IPO of about 20 percent to 30 percent of its equity.

The network will offer for sale, on primary basis, common shares in its capital stock while the special-purpose vehicle will issue and offer for sale Philippine depository receipts relating to common shares in the broadcast firm’s capital stock.

The proceeds from the IPO would be used for the network’s expansion abroad.

Earlier, the company said it has spent about $4 million to upgrade its facilities for its international channel operations.

For its part, Carmen Copper officials have informed the PSE of its intention to go public even as it has yet to disclose a timetable for the offering.