Business World Online
Posted on October 12, 2011 09:14:30 PM
SAN MIGUEL Corp. (SMC) yesterday said a possible $850-million initial public offering (IPO) for its power unit will likely happen this year once market conditions are right.
SMC Global Power Holdings Corp., the country’s largest power producer, plans to sell shares worth as much as P36.9 billion, including overallotment and upsize options. That would make the IPO the country’s biggest.
San Miguel has said it plans to list SMC Global Power this year as the food-to-power group seeks more funds for its infrastructure and energy projects.
“Just waiting for good timing,” Ramon Ang, president of San Miguel, told Reuters in a text message.
He made the clarification following media reports saying SMC Global Power had pushed back plans to sell shares due to volatile market conditions.
Last month, San Miguel announced a base offer of 290 million to 385 million primary and secondary shares at a maximum price of P71 apiece. That excludes an extra 134.75 million shares under upsize and overallotment options.
Wild swings in financial markets in recent weeks have prompted San Miguel to defer the IPO, the reports said, citing unidentified sources.
The Philippine stock index is down about 2% for the year so far, falling 8% in September alone on worries over the euro zone’s sovereign debt crisis and another United States slowdown.
Shares of San Miguel closed 0.6% lower to P113.30 apiece yesterday from its previous close in a market that was largely flat. -- Reuters
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