Quick takes from around the market

Mega Prime Foods (MEGA) [link] is still preparing for an IPO. While MEGA said that it is “ready”, they also noted that any process would “depend on the market,” and would need to occur after several “international milestones” were achieved. MEGA is the country’s leading canned sardines brand, and is considering an IPO to help finance expansion plans.

 

MB Quick Take: If MEGA had great opportunities for growth, it wouldn’t really matter what the market was doing at the time. North Star Meat Merchants (NSMM) shelved an IPO attempt due to market conditions, but it still went ahead with plans to raise money through a private investment because it still had viable growth plans that needed to be financed. Here, it doesn’t sound like MEGA is in that much of a rush, and that makes me feel like a potential IPO probably wouldn’t be right for either MEGA or the average retail buyer. Just my opinion, but I like IPOs that I invest in to be compelling growth stories, where the money raised goes directly to building new lines of business or dramatically expanding existing lines into more profitable markets.
 

Philippine Airlines [PAL 5.34 unch; 63% avgVol] [link] is planning to “elevate Philippine society” by selling a limited series of NFTs (non-fungible tokens) as part of Philippine Blockchain Week. The eight images, created by Trace Orozco, are selling for US$ 5,000 per NFT, and come with a range of real-world things, like $1,500 worth of Mabuhay Miles, one Michael Cinco Metaverse Fashion Gala 2023 ticket, and other (unnamed) “exclusive perks”. The images include Airplane Tail, Arroz Caldo, Female Flight Attendant, Female Pilot, Male Flight Attendant, Male Pilot, and Artist Passenger.

MB Quick Take: What in the web3 is this? I thought the article was satire when I first saw it appear on my X feed. I mean, kudos to Ms. Orozco for doing the work and getting that bag (I think their style looks great), but I couldn’t help but feel like there would actually be a fun market for tradeable PAL NFTs that feature more relatable “iconic” PAL things, like: “Toilet Panel Held On By Packing Tape”, “Super Long Check-in Line”, “Inoperable In-Flight Entertainment Console”, and “Unnamed Female Senator Bumping People Out of Business Class.”

--

Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.

Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.