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Friday, March 29, 2024

Bermaz Auto gets nod for P1.2-b IPO

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The Securities and Exchange Commission on Thursday approved the P1.24-billion initial public offering of Bermaz Auto Philippines Inc., the exclusive distributor of Mazda vehicles in the country.

Documents obtained from the SEC showed that Bermaz Auto would offer 155 million primary and secondary shares at an offer price of up to P8 per share this month.

The offer shares will represent 15.6 percent of the company’s total outstanding capital stock after the IPO.

Net proceeds from the sale of primary shares will be used to fund the construction of a warehouse and body repair and paint facility, establish a Mazda training facility for automotive repair and motor services and construct Mazda showrooms and satellite outlets.

Pricing date for the IPO will be on March 22.  The offering was scheduled on March 27 to March 31 while listing date was tentatively set on April 7.

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The company hired Maybank ATR Kim Eng as the international and domestic lead underwriter and Abacus Capital as domestic co-lead underwriter.

Bermaz Auto is the sole distributor of Mazda vehicles in the Philippines. It currently distributes Mazda vehicle model series with a total of 27 variants to cater to different market segments.

The company is 60.4-percent owned by Bermaz Motor International Ltd. of Malaysian conglomerate Berjaya Corp. and 25.5 percent by listed Berjaya Philippines Inc.

Bermaz Auto reported a net income of P216.2 million in the first six months of its  fiscal year covering May to October 2016, slightly higher than P199.4 million reported in the same period a year ago.

The company sold 2,301 units in the six-month period.  The company commenced operations on Jan. 2, 2013.

Bermaz Auto now has 18 dealerships, including  six in Metro Manila. Two additional dealerships are under construction in Butuan City and General Santos City.

Bermaz Auto is the second company to secure IPO approval from the SEC this year. It will also be the first automotive company to be listed with the stock exchange.  

SEC earlier approved the P7.9-billion maiden share offering of Wilcon Depot Inc.

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