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.

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PureGold: Beyond Expectations

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source: www.puregold.com.ph

PureGold has been showing great results after its IPO last October 5, 2011.

source: http://www.cdodev.com/

The IPO has brought in funds to finance their expansion projects throughout the Philippines. With its three platforms namely PureGold Price Club, PureGold Junior, and PurGold Extra they have captured a big share in the market and also expanding to areas where such store types are not yet available.

source: http://puregold.com.ph

Below is the price chart of PureGold(PGOLD)

source: www.pse.com.ph

 Also with the upbeat entry of PureGold they were able to double net income as reported in BusinessWorld:

SUPERMARKET CHAIN operator Puregold Price Club, Inc. doubled its net income in the third quarter of the year, attributing the feat to increased sales primarily from its expanded retail network, a disclosure to the local bourse yesterday showed. Puregold posted P295.33 million in net income, 110.20% higher than last year’s P140.55 million. The firm’s net sales, however, climbed by 29.46% to P9.65 billion, from last year’s P7.45 billion while cost of sales also surged by 29.15% to P8.33 billion from the previous year’s P6.45 billion. The figures brought the company’s January-to-September net income to P1.078 billion, 185% higher versus last year’s P378.25 million. “This was largely due to increase in turnover as a result of opening of new stores in 2011 and in the fourth quarter of 2010,” the company said. The company opened 15 stores in the nine-month period, four are in hypermarket format. This compares against the 12 stores which were opened in the last quarter of 2010. “These new stores account for 24% of total net sales for the nine months of operation during the year,” Puregold Price Club said. The company’s cost of sales, meanwhile, rose by 33.51% to P23.004 billion from last year’s P17.229 billion. “This was largely due to the opening of new stores, which was partially offset by increase in conditional discounts from the company’s suppliers,” the firm said. As of Oct. 30, the company had 83 stores. It is eyeing to close the year with 100 branches nationwide.

       Source: http://www.bworldonline.com

With its fresh funds and aggressive marketing PureGold is seen to go up beyond its current price. The rise from 12 per share to 18 per share in a matter of 3 months proves that PureGold can be at a target price of 20-21. With all the expansions on going such Target price is achievable.

(Disclaimer: The above is the author's personal view and opinion on PureGold, please trade at your own risk)