Business Mirror
TUESDAY, 11 OCTOBER 2011 19:37 BLOOMBERG NEWS
SAN Miguel Corp.’s power unit has delayed an $854-million initial public offering that would have been the Philippines’ biggest first-time share sale, said two people with knowledge of the matter.
San Miguel’s SMC Global Power Holdings Corp. put the IPO on hold because of volatile markets, said one of the people, who declined to be identified as the decision hasn’t been made public.
The Philippines’ securities regulator last month approved SMC Global Power’s plan to sell up to 519.8 million shares at as much as P71 apiece. Including options to expand the IPO, it might have raised as much as P36.9 billion ($854 million), according to a September 26 filing by SMC Global Power.
That would have made it the largest IPO in the country, according to data compiled by Bloomberg. SM Investments Corp. raised about P28.8 billion in 2005 in a first-time share offering, and Cebu Air Inc.’s 2010 IPO collected P23.3 billion.
Proceeds from the deal will fund expansion projects, including new power plants and the purchase of existing ones, SMC Global Power said in the September 26 filing.
San Miguel, which started as a brewer in 1890, eight years before the Philippines’ declared independence from Spain, has been expanding into other industries to boost returns to three times the 7 percent it used to earn from food and drinks alone. Oil refining unit Petron Corp. accounts for about a third of the Philippine oil market, while SMC Globalcontrols 17.5 percent of the nation’s power generation capacity.
San Miguel in August agreed to buy three Exxon Mobil Corp. units in Malaysia for $610 million in its first purchase of overseas oil assets.
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