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Mall builder may be first IPO this year

Mall builder Philippine Primark Properties, Inc. might be the first company to go public this year after its P1.2-billion initial public offering (IPO) set in April made it to the list of deals that was recently approved by the corporate regulator.Securities and Exchange Commission Logo

On Tuesday afternoon, the Securities and Exchange Commission (SEC) en banc approved three capital market deals with a combined worth of more than P120 billion.

SEC commission secretary Armando Pan Jr. confirmed in a text message on Wednesday that the agency already gave its green light to the P73-billion preferred shares offering of San Miguel Corp. (SMC); the P50-billion bond offering of Ayala Land, Inc. (ALI), and the P1.2-billion IPO of Primark.

Philippine Primark is the first IPO to get the green light from the SEC this year.

The company intends to raise P1.2 billion from the offering of 704.5 million shares at P1.7 per share.

The offer period for this IPO is scheduled to start on April 4 until April 8, while the expected listing date is on April 18.

Philippine Primark told the SEC that the proceeds from the offer will go to the construction of town centers in advanced stage of business development cycle; budget allocation for other future locations; and general working capital purposes.

As of now, there are still about three IPOs waiting for the SEC approval.

Meanwhile, ALI and SMC availed themselves of the new Shelf Registration program under the new Implementing Rules and Regulation of the Securities Regulation Code (2015 SRC IRR).

Under Section 8.1.2 of the 2015 SRC IRR, securities to be issued in tranches may be registered for an offering to be made on a continuous or delayed basis for a period not exceeding three years. The filing fee is also payable per tranche of issuance.

This affords the issuer companies the flexibility when to offer and sell securities within the three-year period.

“Sometimes current market conditions are not favorable for certain firms to issue public offering. By using shelf registration, the issuer companies can fulfill all registration-related procedures beforehand and go to market quickly when conditions become more favorable,” the SEC said.

ALI will specifically register P50 billion worth of debt securities under self-registration. These debt securities will comprise of commercial papers, homestarter bonds, and fixed rate bonds.

For the initial tranche, ALI is planning to sell P8 billion worth of fixed rate bonds due 2026.

SMC, on the other hand, will register as much as 975 million shares worth P73.17 billion.

The transaction involves selling as much as P30 billion worth of shares in the first tranche.