iRemit stocks rise 17.5% in PSE debut

Filipino-owned money transfer group i-Remit Inc. rose 17.5 percent in its stock market debut yesterday as investors scrambled for a piece of the seventh initial public offering (IPO) undertaken this year.

The stock barreled past its P4.68 IPO price, hitting an intra-day high of P5.90 before closing at P5.50 each share, the same level it opened. This despite a broader market slump as concerns on the US housing market resurfaced and oil prices soar to new record levels.

About 36.4 million shares changed hands valued at P267.69 million.

iRemit is the first IPO since early August after the huge correction resulting from the US subprime woes.

“We’re quite happy with the listing considering that the IPO was five times oversubscribed,” said iRemit chairman and chief executive officer Banson Choa.

iRemit director Ben Tiu, for his part, said they have intentionally priced the shares low so  the public can have a chance to invest and make money.  “We’d like the public to be happy.”

The company sold to the public  a total of 140.6 million shares (accounting for 25 percent of iRemit), raising P658 million in additional capital. The offer price was equivalent to 12 times projected 2008 earnings.

iRemit chief operating officer Harris Jacildo said the company is eyeing a net income of P100 million by yearend and expects this to double in 2008 on the continued expansion of its business and introduction of new products.

iRemit plans to use most of the proceeds to finance expansion in existing and new markets, augment working capital requirements and retire some of the company’s short-term debt.