Globe [GLO 2184.00 0.46%] [link] SRO was approved by the PSE. GLO said that the price would be set on September 8, and would be a discount of between 18 and 25% off the volume-adjusted price over some (as-of-yet-unknown) period of time. The ex-date will be on September 16, with the record date on September 21. The offer period will run from October 3 through October 7, with listing tentatively scheduled for October 28. No word yet on the entitlement ratio.
MB Quick Take: The GLO board originally approved a P32-billion SRO, so this offering is about half the size. The main thrust of the transaction is still capex, as GLO intends to put 60% of the proceeds toward capex, and the bulk of that chunk will be spent expanding its wireless network of 4G/LTE towers and its 5G roll-out. The remaining 40% of the proceeds will go to various forms of debt repayment.
Prime Media [PRIM 1.71 4.47%] [link] board voted to raise its authorized capital stock by 40% (P2 billion) to allow for “additional issuance of shares for future subscription.” In the same batch of amendments, the board also approved a plan to eliminate the 0.06% of foreign ownership to comply with the rule against foreign ownership in media companies.
MB Quick Take: The market price of the Romualdez-owned media company’s shares has been volatile to say the least. At the end of April, PRIM was worth P1.21/share, but by mid-June, it was up 181% to P3.41/share. With ABS-CBN [ABS 9.20 0.55%] dead at the hands of the previous administration, speculators piled into the stock hoping/wishing that some behind-the-scenes power moves would magically transfer ABS “stuff” to PRIM. By the start of August, PRIM was down 40% from that high, to P2.03/share, and after a slight pump last week, ended yesterday at P1.71/share. That’s up 40% from April, but down 50% from early August.
Solar Philippines [SPNEC 1.66 1.78%] [link] SRO offer period ended yesterday. Any shareholders that availed of the SRO will see the shares credited to their trading accounts on the morning of September 15th, when the new SRO shares are set to be listed on the PSE.
MB Quick Take: The SRO shares are just like any other SPNEC share. There are no minimum holding periods or selling restrictions of any kind, so shareholders will be free to do whatever they want with the shares the moment the PSE opens on the 15th. There was heavy retail interest in the SPNEC IPO, but I haven’t heard as much buzz from the retail crowd about this SRO. That makes me very interested to hear any information about the SRO’s take-up with investors. What percentage of the shares were taken in the first round? Were Solar Philippines Power Projects Holdings Inc (SPPPHI, SPNEC’s parent company), or any of the underwriters required to purchase shares to ensure 100% take-up? We’ll have to wait for more info!
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