Philippine Business Bank of the Zest-O Group For Possible IPO

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source: http://www.pbb.com.ph

Another news of a possible IPO either late this year or early 2013.

From Inquirer.net

Philippine Business Bank plans to raise P3B from IPO

By: Doris C. Dumlao
Philippine Daily Inquirer 12:32 pm | Monday, July 30th, 2012 

MANILA, Philippines–Philippine Business Bank, the thrift banking arm of the Zest-O group, plans to raise P3 billion from an initial public offering late this year or in early 2013.

In an interview last week, PBB president Roland Avante said the bank was looking to offer 20-30 percent of its shares to the public, thus beefing up fresh funds for expansion. The offer will comprise only primary shares, which means that all proceeds would be plowed into the bank.

“It’s really more as a strategic move to be able to maybe expand business further and then, (raise funds) as an added ammunition. We’re building a war chest for possible acquisition and investments in the horizon of over two to three years if there will be a license upgrade,” Avante said.

PBB chair Alfredo Yao had previously said if the thrift bank were to upgrade its banking license, it would go for universal banking than regular commercial banking operations.

click here to read full article

EastWest Bank IPO

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source: http://www.eastwestbanker.com

The Gotianun owned bank will have their IPO this May 2012. 

After last year's stellar performance, the bank will finally list in the Philippine Stock Exchange to take advantage of the foreseen growth in the Philippine economy. With expansion plans to put up branches in the provinces and to extend their products beyond their mid-market corporate clients to consumer products, the Filinvest Development Corp. subsidiary will make is debut in the Philippine Stock Exchange.

Press releases have a 18.50 - 23.50 pesos per share price on the bank's listing day. 

source: Philippine Stock Exchange

With their new logo and their new tag line "Your Dream Our Focus" the management of EastWest Bank are positive about their expansion plans of which the proceeds of the IPO will be allocated to settle the bank licenses acquired from Bangko Sentral and for the construction of bank branches. 

EastWest bank may not be one of the top 10 banks in the Philippines but it is the fastest growing bank. That has been the driving force of the company and thus the IPO will make that goal, to be one of the top banks in the Philippines, a reality. With more branches to capture part of the banking/loans market of the Philippines plus the positive outlook of the Philippine economy, EastWest bank's IPO could be a good investment.

Disclaimer: Trade at your own risk. The opinion of the blogger in regards to EastWest Bank's IPO is his personal opinion.

After Puregold; Cirtek Holdings Philippines Corporation

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source: http://www.cirtekholdings.com

Spotted this upcoming listing of Cirtek Holdings Philippines Corporation in the PSE's new website.

Cirtek is a semiconductor manufacturing company operating in the Laguna Technopark. Cirtek is owned by Filipino-Taiwanese businessman Jerry Liu who is also the owner of Figaro Coffee and Angel's Pizza.

Proceed from upcoming IPO will be used by Cirtek for its 3 year expansion program. 

Below is a news from Philippine Daily Inquirer for the upcoming IPO:

SEC approves P660-M IPO plan by Cirtek

By: Doris C. DumlaoPhilippine Daily Inquirer

8:35 pm | Thursday, September 8th, 2011

MANILA, Philippines—The Securities and Exchange Commission has approved a plan by Laguna-based semiconductor manufacturer Cirtek Electronics Corp. to raise as much as P660 million from an initial public offering at the local stock market.

The SEC en banc approved on Thursday Cirtek’s plan to offer up to 61.82 million in new common shares at an offer price of up to P10.68 per share.

This will bring to public hands about 34 percent of its outstanding stock after the IPO.

While it was earlier reported that Cirtek wants to conduct the IPO within September, the timing would depend on how soon the Philippine Stock Exchange will line up this offering and also on whether market conditions would be favorable.

“We’re waiting for PSE and (we’re) flexible as we’re still watching the market,”  Eduardo Francisco, president of BDO Investment and Capital Corp. which was mandated as the IPO underwriter, said in a text message on Thursday.

In its regulatory filing, Cirtek said net proceeds would be used primarily for the acquisition of new machinery and equipment as well as for general working capital requirements.

The Cirtek group plans to embark on a three-year expansion program to increase business and to further expand its customer base.

The expansion program will require the construction of a third building at its current manufacturing complex in Biñan, Laguna, which will add 180,000 square feet of manufacturing space and the acquisition of new equipment and machinery to increase production capacity.

Cirtek is owned by Taiwanese-Filipino businessman Jerry Liu, who also leads the Figaro coffee and Angel’s pizza chains.

An company presentation was made last October 11, 2011. Below is a memo from the PSE of the said presentation.

An Equity Research was made by UniCapital Securities Inc. 


Below is a screen shot of the research: 

source: http://www.unicapital-inc.com/index.php

source: http://www.cirtekholdings.com/wp-content/uploads/cec_Equity_Research_Report_09_15_11.pdf

Notice: Investing in Philippines is not paid to blog about Cirtek's upcoming IPO. Information for the above post is taken from noted sources. Caveat emptor.



UPDATE:

Please read Letter for the deferment of Cirtek's IPO

Angel's Pizza, Cirtek, Cirtek Holdings Philippines Corporation, Equity Research, Figaro Coffee, IPO, Jerry Liu, Laguna Technopark, Semiconductor, UniCapital Securities Inc., 

IPO News: SMC Global Power Holdings Corporation

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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.

Puregold Initial Public Offering

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source: http://puregold.com.ph/

I was glancing at my Google Alerts in my Outlook mail when my eye caught this news.

Source: http://www.manilastandardtoday.com

SEC approves Puregold’s P12.4-b public offering

by Jenniffer B. Austria

The Securities and Exchange Commission en banc approved Friday the P12.4-billion initial public offering of Puregold Price Club Inc., the supermarket chain owned by Filipino-Chinese businessman Lucio Co.

Based on the approved timetable, Puregold said it would set the final price of the shares on Sept. 21 and start offering them from Sept. 23 to 29. It plans to list the shares on Oct. 5.

The company will offer up to 600 million in primary and secondary shares and another 90 million common shares to cover overallotment.

The public offering could generate as much as P12.4 billion in proceeds based on an assumed maximum price of P18 per share.

Puregold said it was spending P6.26 billion from 2011 to 2013 primarily to put up new stores in Davao, Rizal, Cavite, Bataan, Pangasinan, Baguio City, Ilocos Norte, Caloocan, Bulacan, Camarines Sur, Laguna, Quezon City, Legaspi City, Iloilo City, Leyte, Cebu City, Tarlac City, La Union and Albay.

Puregold said it would use proceeds from the IPO to settle debt and finance store expansion.

The company plans to settle P2.24 billion worth of debt with China Banking Corp., Metropolitan Bank & Trust Co. and Banco de Oro Unibank.

The supermarket chain hired HSBC and UBS AG as joint global coordinators and international lead managers and BDO Capital and Investments Corp. and First Metro Investments Corp. as domestic lead underwriters.

Net sales reached P17.3 billion in the first six months of 2011, up 41 percent from P12.3 billion year-on-year while net income grew 270 percent to P782 million from P212.2 million.

Puregold will offer 500 million in primary shares and 100 million in secondary shares owned by existing shareholders, including Lucio Co and Susan Co.

The company plans to sell up to 420 million common shares to international investors and 180 million to local investors.

Puregold is the second-largest retailer among the hypermarkets, supermarkets and cash and carries in the Philippines based on gross sales in 2010.

The company has grown significantly since it commenced operations, expanding its business from one store in 1998 to 72 in 20 cities and 22 municipalities throughout Metro Manila as of end-July 2011.

The company focuses on two customer segments, which are retail customers and resellers. It offers three retail formats and store brands, namely hypermarkets, supermarkets and discounters.

Approximately 65 percent of its customers are C and D markets with a monthly income of P8,000 to P50,000.
Source: http://www.manilastandardtoday.com




In my opinion we should do our due diligence before jumping into this IPO. The expansion of Puregold has greatly help its bottomline and also since part of the proceeds of the IPO is to be use to settle obligations the remaining payment will be use to put up more stores specially in the far flung provinces in Northern Luzon and probably Mindanao.


It is a new opportunity but again one should carefully study Puregold's long term profitability. I am searching for available financial statement of the company to do fundamental analysis but so far haven't found one. If you know where to find one please leave link in the comments below.

Investing word of the day: Secondary market

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source: http://richard-wilson.blogspot.com

What is a secondary market?

As per PSE:

exchanges and OTC markets where securities are bought and sold subsequent to original issuance which took place in the primary market. Also called "aftermarket". source: www.pse.com.ph

So secondary market refers to the the next change of hand from the original source. So in the case of stocks the origin was from the company and the one traded in the stock exchange is already the second change of hand thus stock markets are often called secondary market. 

When the company issued the stocks to one of its subscriber that is called the first market. When the particular stock is listed in an exchange and the subscriber/investor sells his stocks through the stock exchange there is a change of owner of the stock thus it is deemed that such transaction is after the first issuance.

In the case of IPO it is considered as a primary market since banks only act as underwriters of the company that is why the transfer from the underwriter bank to an investor in an IPO is not a secondary market. It only becomes secondary market when the investor will trade his newly acquired stock.

Stock Market News: Megawide IPO

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MEGAWIDE CONSTRUCTION CORPORATION(source www.pse.com.ph)   KEY DATA Company Name  :  Megawide Construction Corporation   Status  :  APPROVED  (26-Jan-2011) Address  :  2/F Spring Bldg., Arnaiz Ave. cor. P. Burgos St., Pasay City   Listing Price  :   --  Tel. No/s  :  414-0680; 376-3425   Offer Price  :   --  Fax No/s  :    Offer Shares  :   --  E-mail Address  :    Offer Amount  :   --  Company Website  :  www.megawide.com.ph   Total Expenses  :  0 CEO  :  Michael C. Cosiquien   Minimum Subscription  :  100 No. of Employees  :   --    Shares Over Alloted  :   --  Place of Incorporation  :  Philippines   Shareholder Shares Offered  :   --  Symbol  :  MWIDE   Shares to be Listed  :   --  Date of Incorporation  :  28-Jul-2004   Shares Outstanding  :  565,000,002 Fiscal Year End  :  December 31, 2010   Lockup Period (days)  :   --  Board  :  First   Lockup Expiration  :   --

FINANCIALS Revenue  :  P3,036,991,580.00 Net Income  :  P245,839,080.00 Total Assets  :  P3,125,474,373.00 Total Liabilities  :  P2,239,553,344.00 Stockholders' Equity  :  P885,921,029.00

EXPERTS Lead Underwriter  :  BDO Capital & Investment Corporation Underwriter(s)  :  -- Company Counsel  :  Quasha Ancheta Peña & Nolasco Underwriter Counsel  :  Martinez Vergara Gonzalez & Serrano Auditor  :  Punongbayan & Araullo Transfer Agent  :  Banco de Oro Unibank, Inc. - Trust Banking Group Receiving Bank  :  Banco De Oro Unibank, Inc. - Trust and Investments Group

Stock market news: IP CONVERGE DATA CENTER, INC.IPO

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I got this message  again from my COL account 

Offer Price: P4.20/ share

Minimum Subscription: 1000 shares and thereafter, in multiples of 1000 shares

Offer Period: November 25 to November 30, 2010 - 12:00 Noon

 

COL End of Offer and Payment: November 30, 2010 

12:00 Noon

Tentative Listing Date: December 9, 2010 

Payment Terms: 100% due upon subscription not later

than November 30, 2010 12:00 Noon

INITIAL PUBLIC OFFERING FOR IP CONVERGE DATA 

CENTER, INC.

Please be informed that the Board of Directors of The Philippine Stock Exchange, Inc. approved on October 20, 2010, the application of IP CONVERGE DATA CENTER, INC. (CLOUD or the Company) for the initial listing of 181,866,669 common shares, with a par value of P1.00 per share under the Second Board of the Exchange consisting of the following:

a.136,400,002 common shares, representing the issued and outstanding shares of the Company prior to the Initial Public Offering (IPO) of the Companys shares; and
b.45,466,667 common shares, representing the common shares to be offered to the public on a primary basis.

THE OFFER

Offer Price : Php4.20 per share

Minimum   : 1000 shares, and thereafter in multiples of 

                     1000 shares

COL Offer Period : November 25 to November 30, 2010 

                 12:00 Noon

COL End of Offer and Payment   : November 30, 2010 

                 12:00 Noon

Tentative Listing Date  : December 9, 2010

Payment Terms  : Full payment on or before November

                 30, 2010

Important:

Due to the limited number of shares available,

subscriptions are not guaranteed which may force us 

to raffle minimum lots. We encourage clients to 

subscribe through the Local Small Investors (LSI)

Program, for details, click here.

For interested subscribers, please subscribe online by 

clicking here. Deadline for subscription requests and 

payment is on November 30, 2010 12:00 Noon.

NOTE: COL shall not process subscription requests for

accounts that fail to provide adequate funding given the

deadline of the payment on November 30, 2010.

Please be guided accordingly.

CitisecOnline Helpdesk

 
helpdesk@citiseconline.com

Stock market news: NAC(Nickel Asia Corp.) IPO

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Got this message from my COL account regarding the anticipated IPO of Nickel Asia Corp.

NICKEL ASIA CORPORATION IPO

Offer Price: P15.00 / share

Minimum Subscription: 1000 shares and thereafter, in multiples of 100 shares

Offer Period: November 8 to November 11, 2010 12:00 Noon

COL End of Offer and Payment: November 11, 2010 12:00 Noon

Tentative Listing Date: November 22, 2010 

Payment Terms: 100% due upon subscription not later than November 11, 2010 12:00 Noon

INITIAL PUBLIC OFFERING FOR NICKEL ASIA CORPORATION

Please be informed that the Board of Directors of The Philippine Stock Exchange, Inc. approved on October 20, 2010, the application of NICKEL ASIA CORPORATION (NIKL or the Company) for the initial listing of up to 1,339,831,828 common shares, with a par value of P0.50 per share, under the First Board of the Exchange consisting of the following:

a.989,656,828 common shares, representing the total 

number of issued and outstanding shares of the 

Company prior to the Initial Public Offering (IPO) of the 

Companys shares;


b.Up to 304,500,000 common shares, representing the 

total number of shares, inclusive of 132,991,828 

common shares held in treasury, to be offered to the 

public on a primary basis; and 


c.Up to 45,675,000 common shares, representing the 

Over-Allotment Option in connection with the

companys IPO.

THE OFFER

Offer Price              : Php15.00 per share
 
Minimum                : 1000 shares, and thereafter in 

                                  multiples of 100 shares
 
COL Offer Period    : November 8 to November 11, 2010

                                 12:00 Noon
 
COL End of Offer and Payment   : November 11, 2010

                                                       12:00 Noon
 
Tentative Listing Date   : November 22, 2010
 
Payment Terms             : Full payment on or before 

                                       November 11, 2010

Important:

For interested subscribers, please subscribe online on 

November 8, 2010 by clicking on the Nickel Asia 

Corporation Initial Public Offering (IPO) banner located

at the top and bottom of this page. Deadline for 

subscription requests and payment is on November 11,

2010 12:00 Noon.

NOTE: COL shall not process subscription requests for 

accounts that fail to provide adequate funding given 

the deadline of the payment on November 11, 2010.

Please be guided accordingly.

CitisecOnline Helpdesk
 
helpdesk@citiseconline.com

What are stocks anyways?

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source: http://www.zdiaz.com/

Hey wait a minute what are stocks anyways?

I know I have been babbling things about investing in stocks and yet I haven't explained yet what are stocks. So I am writing these to share you something about stocks..... I'll make the story as short as possible :)

There are 3 basic forms of business organization. These business models or layout are primarily based on the ownership of a person or persons involved has on the business. These are Sole Proprietorship, Partnership, and Corporation.

Since our area of concern is about stocks I will just make a short explanation about Sole Proprietorship and Partnership for comparison purposes.

Sole proprietorship, the name says it all. It is a business owned or under the name of one person. It is like a "tindahan" with the name "Tindahan ni ALlng Nena". The business may be owned or maybe run by the family of Aling Nena but as regards to recognition the business is under Aling Nena's name thus she is the Sole owner.

source: http://video.tellytube.in/tindahan/

Partnership in Philippine law is formed when 2 or more persons enter into an agreement to join and form a business and share earnings and losses.Also under Philippine law when partners agree to join and form such to operate a business a juridical person is created thus the partnership stands as one juridical person in the eyes of the law under the Partnership Code of the Philippines and the partners represent the partnership.When one or some of the partners die, withdraw, or sell his interest in the partnership, the partnership is dissolve and the remaining partners has the option to continue the partnership by agreeing to new agreement or to totally dissolve the partnership.(If this one seems nosebleed to you better ask your lawyer or CPA friend to further expound about this topic I hope they don't charge you consultation fee).

And now about the topic I should have discuss in the beginning.

Here is the definition of a corporation from the Philippines Corporation Code or Batas Pambansa Blg. 68:

Sec. 2. Corporation defined. - A corporation is an artificial being created by operation of law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its existence.(taken from http://www.chanrobles.com/legal5title1.htm#TITLE%20I)

Corporation is business model where at least 5 but not more than 14 incorporators, which must be natural persons, form the corporation requiring at least that 25% of the authorized shares is subscribed and that 25% of the subscribed shares are paid. From there on ownership of the company can be transferred from one person to another through sale, inheritance, or donation and the remaining unsubscribed shares can be issued to interested investors or through a stock market by way of an Initial Pubic Offering(IPO).

Stocks or Shares of stocks represent one's ownership in the stock-corporation in particular because there are corporations which are non-stock corporation(again ask your lawyer or CPA friend to explain these further). As stated in the definition corporations has the "right of succession" meaning stock ownership can be transferred from one person to another. In law person can be natural person or juridical person(again ask your lawyer or CPA friend about this).

A corporation's stock could either be a common stock(share capital) or a preferred stock(preference share). To defined common stock let us first define preferred stock which is defined as stocks that carry no voting rights(with some special cases where such stocks can vote), but may carry priority over common stock in the payment of dividends and upon liquidation. Preferred stock may carry a dividend  that is paid out prior to any dividends being paid to common stock holders. Preferred stock may have a convertibility feature into common stock.  

Common stock is the opposite of Preferred stock. Preferred stock may have a stated rate of dividend that must be paid out first before paying out Common stock holders and will be given priority on the return of capital in case of liquidation. In a way it has the qualities of a loan or bond because of the attached rate that the company must pay out first to each Preferred stock holder before paying some to common stock holders.

The good thing with this is that a Preferred stock share in the company's earnings is limited to the rate stated, so when the company has performed well the remaining distributable earnings all goes to the common stock holders after satisfying the amount due to preferred shares holder.

The proceeds of the initial sale of the stock from the company goes to the equity section of the company where we based the Book value per share. A stock may have a par value but could be bought at above par thus when you read a company's Balance sheet a portion of the Stockholder's Equity has the section Paid in Capital. This represent the amount paid by the investor on top of the par value. In the company's book it is not recorded as income because such transaction is related to financing activity rather than its operating activity.

When the initial investor sales his or her stocks to another person the proceeds now goes to the investor since it is mere sale of his or her property to another which may be at a profit or at a loss. Thus stock market are there for such transactions. Stock markets has rules to follow to make sure the transfer of stocks from one person to another is properly recorded and that the investing public interest's is safeguarded against fraud. 

Since the stocks that are traded are now properties of their respective owners, the price of each stock now is dictated by market forces just like in any ordinary market place.We sell our property to gain and not to lose thus prices change and the price now is called market price.

Though the stock's market price is not dictated by the company that issued it, investors still look into the operation of the company to gauge its value and demand a higher price in times that the company performs well. Thus a company that reported a good performance will have its traded shares having a higher market price because investors sees that as a value added to the stock which one can get when such is a holder of it. These is what we call dividend. But since such could still be sold in a stock market one would normally sell to gain profit from there investment.