Concepcion Industrial gets SEC okay for P2.7-B IPO
MANILA, Philippines - Appliance maker Concepcion Industrial Corp. has moved a step closer to going public and raise P2.7 billion from an initial public offering (IPO).
In an en banc decision, the Securities and Exchange Commission said Concepcion Industrial’s IPO application was approved Monday.
Concepcion Industrial is now ready to secure the approval of the Philippine Stock Exchange to list in the local bourse.
Concepcion Industrial, one of the Philippines’ leading suppliers of air conditioning solutions and refrigerators and consumer appliance products, aims to sell as much as 74.96 million shares at a maximum offer price of P31.45 per share.
Including the over-allotment option of up to 11.24 million shares, the company stands to raise as much as P2.711 billion in fresh capital.
Proceeds from the IPO will fund working capital and startup costs with a potential joint venture with Midea to expand the company’s products to other electrical home appliances, the company said.
“Building on its competitive strengths, the company seeks to implement the [several] strategies, in part by becoming the leading provider of consumer appliance durable goods and building solutions in the Philippines,†it added.
The appliance maker, which operates through subsidiaries Concepcion Carrier Airconditioning Co. and Concepcion Durables Inc., hired Maybank ATR Kim Eng Capital Partners Inc. as its domestic lead underwriter.
In the first half this year, profits of Concepcion Industrial rose eight percent to P409.3 million from P377.5 million a year ago while net sales jumped 10 percent to P3.76 billion from P3.4 billion.
Four firms have so far debuted in the local bourse: Philippine Business Bank, Asia United Bank, Del Monte Pacific Ltd. and AG Finance Inc.
Other companies slated to list in the local bourse this year are tugboat operator Harbor Star Shipping Services Inc., Gokongwei-led Robinsons Retail Holdings Inc. and casino owner and operator Travellers Hotel Group Inc.
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