Harbor Star sets IPO price at P1.88/share

MANILA, Philippines - Local tugboat operator Harbor Star Shipping Services Inc. has finalized the selling price for its initial public offering (IPO), setting the offer price at a substantial discount.

In a letter to the Philippine Stock Exchange, Harbor Star said “the final offer price of the company’s IPO is P1.88 per share.”

This will allow the company to raise P341.4 million in its market debut, which is lower than the previous targets of P593.83 million and P454 million.

Harbor Star earlier planned to list 605.238 million common shares, of which 181.6 million shares will be sold to the public at a maximum price of P3.27 apiece. But last week, it lowered the price guidance to a maximum of P2.50 apiece.

The final selling price of P1.88 per share is a 24.8-percent discount to the P2.50 guidance.

Harbor Star said the offer period is scheduled on Oct. 16-23 and listing on Oct. 30. Under the original timeline, the offer period should have been conducted on July 22-26, followed by listing on Aug. 2.

In July, Harbor Star became the third company to postpone its public share sale given unfavorable market conditions. Robinsons Retail Holdings Inc. and Travellers International Hotel Group Inc. earlier deferred their P40-billion and P42-billion IPO, respectively.

Harbor Star plans to use the fresh capital for the acquisition of tugboats for domestic and international expansion and refleeting.

Harbor Star started commercial operations with just one tugboat in 1998. After 10 years, it has increased its fleet to more than 20 tug boats located in major ports like Bataan, Batangas, Quezon, Cebu, Iloilo, Cagayan de Oro, Leyte and Davao.

Its services include ship salvage, wreck removal, firefighting, oil spill abatement and recovery and handling hazardous chemicals.

Harbor Star hired Abacus Capital & Investment Corp. as issue manager and lead underwriter.

Four firms have so far debuted in the local bourse this year: Philippine Business Bank, AG Finance Inc. and Asia United Bank through an IPO, and Del Monte Pacific Ltd. via listing by introduction that gave the company the leeway to sell shares at a latter date.