San Miguel Pure Foods Co. Inc. may move its planned share sale worth between P100 billion and P150 billion to the second half of the year given the successive fund raising activities in the market capital markets.
A highly placed banking source the Pure Foods follow-on offering, which would be the largest equity offering in the the history of the stock market in the Philippines, might have to take place in the third of quarter of 2018. The source noted that the market was currently flooded with companies raising funds from the equities and debt market.
“We need to give market a time to rest,” the source said.
SM Prime Holdings Inc., San Miguel Global Power Holdings Inc. and San Miguel Corp. have issued fixed rate bonds equivalent to a combined P43 billion since the start of the year. NLEX Corp., meanwhile, plans to offer bonds worth P6 billion.
Two companies—Robinsons Land Corp. and the Philippine Stock Exchange—completed their right offering worth a combined P23 billion.
In the pipeline are the rights offerings of two of the country’s biggest banks, namely Metropolitan Bank & Trust Co. of the Ty family, which is looking to raise P60 billion, and Bank of the Philippine Islands of conglomerate Ayala Corp., which plans to raise another P50 billion.
Two more companies plan to conduct their maiden share offering in the first half of the year—Del Monte Philippines Inc and DM Wenceslao and & Associates Inc.—worth P16 billion and P17 billion, respectively.
Sources said two local investment banks, namely BPI Capital Corp. and BDO Capital and Investments Corp., and three foreign banks—JPMorgan, UBS and Morgan Stanley-will arrange the huge Pre Foods transaction.
If the P150-billion ($1.5 billion) share sale of Pure Foods pushed through, it would be the largest equity deal in the local bourse and easily surpass the P38-billion ($912 million) follow-on offering of airline and tobacco billionaire Lucio Tan’s LT Group Inc.