Manila Standard Today reported that San Miguel Corporation has deferred the planned PHP 36.6 billion initial public offering for power unit SMC Global Power Holdings to 2013 because of poor market conditions.
Mr Alan Ortiz president of SMC Global Power said that the stock market was not conducive to raising funds because of developments in Europe. He added that “We will see if we can do IPO in 2013."
SMC Global Power in October 2011 postponed the planned IPO because of volatile markets amid the sovereign debt crisis in Europe. The company initially planned to list its shares in the last quarter of 2011 under the first board of the Philippine Stock Exchange. The IPO would have been the largest public offering in the Philippines.
SMC Global Power, according to a registration statement earlier filed with the Securities and Exchange Commission, had planned to offer between 348 million and 519.7 million in primary and secondary shares, which could generate between PHP 24.7 billion and PHP 36.6 billion in proceeds.
The base offer calls for the sale of between 290 million and 385 million shares to be sold at as much as PHP 71 apiece.
San Miguel is allocating an upsize option consisting of another 58 to 77 million shares for local investors in case the market turned positive, and another 43.5 million to 57.7 million shares will be earmarked for the over allotment option.
San Miguel plans to use proceeds from the public offering to acquire and put up Greenfield power projects.
SMC Global Power plans to build four Greenfield power projects in Cavite, Leyte, Bulacan and Davao worth PHP 90.4 billion between 2011 and 2016.
SMC Global Power said it also planned to continue strategic acquisitions of existing power plants. Among these are the Naga Power Plant Complex and the Unified Leyte Geothermal Power Plant.
SMC Global Power had tapped Goldman Sachs (Singapore) Limited, Standard Chartered Securities Pte Limited, CIMB Singapore and UBS AG as joint book runners and international lead managers.
Source - Manila Standard Today
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