SMB to cut IPO price

Asia's leading food and beverage conglomerate, San Miguel Corporation (SMC), will push through its planned initial public offering (IPO) this year of its domestic brewery unit San Miguel Brewery, Inc. (SMB). However, SMC would slash its IPO price range at a more competitive level to address investors' growing concern on declining share prices.

Currently, the Philippine stock market is, generally, on a downward trend for the past six months. Yet despite of the market's bearish mode, the local business community remains optimistic as there are still firms planning to brave the volatile market. In fact, Pepsi Cola Products Philippines was the first one to launch an IPO this year. Procurement specialist BayanTrade would most probably followed suit after SMB's IPO.

Based on documents submitted to the Securities and Exchange Commission (SEC), SMB reduce its price range from Php9.50 to Php16.30 per share to Php8.00 to Php15.40 per share. The price cut would reduce SMB's potential proceeds from the sale of shares by about Php1.391-billion, from the Php25.246-billion down to Php23.855-billion. Part of these proceeds would be used to help the parent firm's diversification to power, infrastructure, mining and utilities business.