Investing in Philippines: IPO News: SMC Global Power Holdings Corporation

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Sunday, October 2, 2011

IPO News: SMC Global Power Holdings Corporation

source: http://www.sanmiguel.com.ph/businesses/


As we already know, Ramon Ang of San Miguel Corporation has been aggressively diversifying to the power sector and the latest is the listing of SMC Global Power Holdings Corporation.

Below is an excerpt of SMC Global Power Holdings Corporation approved listing: 

 source: Manila Bulletin

SEC Approves SMC Global IPO

By JAMES A. LOYOLA
October 1, 2011, 12:34am

MANILA, Philippines — The Securities



and Exchange Commission has approved the registration of the shares of SMC Global Power Holdings Corporation, paving the way for its P36.9-billion initial public offering – the biggest in the country’s history.


SEC documents show, the IPO will help SMC Global to raise fresh funds to finance the expansion of its power generation assets including the investment of P90 million in the next 5 years to build new power plants.

SMC Global Power plans to raise between P12.76 billion and P27.34 billion from a base offer of 290 million to 385 million primary and secondary shares at a maximum price of P71 per share.

Up to 288.75 million will be primary shares and 96.25 million will be secondary shares held by parent firm San Miguel Corporation (SMC).

million to 77 million primary and secondary shares, which will be sold to domestic investors, as well as an over allotment option of 43.50 million to 57.75 million secondary shares.(to read the entire article click here)






At the beginning most analyst are skeptical about SMC. The main reason for this is SMC under Ramon Ang's leadership has become unpredictable with various acquisitions and sell of its  assets and subsidiaries. 



With the above news analyst will probably take another look at how RSA has been transforming SMC from the company known for San Miguel Beer to a new company that is venturing to energy generation through the Initial Public Offering of SMC Global Power Holdings Corporation.


To date SMC Global Power Holdings Corporation has 4 power plants in Luzon under IPPA contract: Sual Power Plant(Pangasinan), Ilijan Power Plant(Batangas),San Roque Power Plant(Pangasinan), and Limay Power Plant(Bataan).

The planned IPO said to be the biggest for the Philippines to date is to expand SMC Global's network of energy generation and other corporate expenditures. 



San Miguel will be well positioned in the energy generation sector with SMC Global's IPO that will help finance expansion projects, with its shareholdings in Meralco for power distribution, and coal mines in the Southern part of the Philippines. These key industries to which San Miguel has been focusing will be the driver for SMC to once more be one of the most sought after corporation in the Philippines.




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