SEC approves Bermaz IPO

MANILA, Philippines -  The Securities and Exchange Commission has approved the planned initial public offering of Bermaz Auto Philippines Inc. (BAP), distributor of Mazda vehicles in the Philippines.

The company plans to raise up to P1.24 billion from its market debut where it plans to sell 155 million in primary and secondary common shares at a maximum price of P8 per share, according to documents filed with the SEC.

Of the P1.24 billion, P638 million will be used to build a new warehouse and body repair and paint facility in the Philippines as well as construct new Mazda showrooms and satellite offices.

BAP also plans to establish a Mazda training facility for automotive repair and motor services.

It plans to do all these projects within one year starting in the second quarter.

In its registration statement filed with the SEC, BAP said it would issue 83.4 million new common shares for the primary offer and 71.57 million shares for the secondary offer. which will come from selling shareholders such as Berjaya Philippines, Bermaz Motor International, Prima Merdu Sdn Bhd, Tan Tech Wah and Terrific Dynamics Sdn Bhd.

The company plans to list in the first half of the year. The shares represent a public float of about 15.6 percent.

Maybank ATR Kim Eng Capital Partners Inc. is the international and domestic lead manager and underwriter for the IPO while Maybank Investment Bank Berhad as principal adviser.

Parent company Berjaya Philippines is an investment holding firm with businesses in hotels, casinos and gaming through leasing online lottery equipment; automotive and food through Papa John’s Pizza chain.

For its hotel portfolio, it is behind the Best Western Astor Hotel and Berjaya Makati Hotel.

Its automotive business, meanwhile, includes the distribution of brands under HR Owen and Mazda in the Philippines.