MANILA – The Concepcion family’s appliance manufacturing company is braving the equity market with a plan to sell its shares to the public for the first time.
Documents from the Securities and Exchange Commission showed Concepcion Industrial Corp filed an application on September 4 to raise P2.36 billion from the sale of up to 74.97 million primary and secondary shares at an offer price of up to P31.45 apiece.
In case of strong demand, the offering has an over-allotment option of up to 11.24 million shares. About 70 percent of the primary shares will be sold overseas.
Net proceeds from the transaction will fund the company’s expansion, day-to-day operations and pay down debt.
"Expansion pertains to the investment to fund initial working capital and startup costs associated with a potential joint venture with Midea to expand the company's products to other white goods or electrical home appliances," Concepcion Industrial said.
Maybank ATR Kim Eng Securities Pte Ltd was mandated as the international underwriter and book runner, while Maybank ATR Kim Eng Capital Partners Inc was tapped as the domestic lead underwriter and issue manager.
Concepcion Industrial, formerly Concepcion Airconditioning Corp, has Raul Joseph Concepcion as its chairman and chief executive officer.
A unit of Concepcion Industries Inc, Concepcion Industrial has a 60 percent interest in Concepcion-Carrier Airconditioning Co, the company behind the Carrier, Condura and Kelvinator brands.
Concepcion Industrial's primary purpose is to manufacture all kinds of appliances, machineries, equipment fixtures, accessories, parts and goods, and to trade the same on wholesale/retail basis.
Four companies -- Philippine Business Bank, Asia United Bank, Del Monte Pacific Ltd and AG Finance Inc -- have gone public this year, while Gokongwei-led Robinsons Retail Holdings recently bagged SEC approval to raise P36 billion through an initial public offering (IPO).
Amid the volatile market conditions, Travellers International Hotel Group Inc – a joint venture between Philippine billionaire Andrew Tan and Genting Group – and tug boat operator Harbor Star Shipping Services Inc deferred their IPOs, whereas Discovery World Corp of the Tiu family also pushed back its P1-billion share sale.
source: interaksyon.com
