Mazda MX-5 RF
The Securities and Exchange Commission has approved a plan by Mazda car dealer Bermaz Auto Philippines Inc., an affiliate of Malaysian conglomerate Berjaya, to raise as much as P1.24 billion from a local stock market debut.
Based on its prospectus, Bermaz plans to sell 155 million in primary and secondary common shares at a maximum price of P8 per share.
The SEC approved the proposed initial public offering of Bermaz during the en banc meeting on Thursday, Commission Secretary Arman Pan said.
The timing of this offering by Bermaz will depend on subsequent approval by the Philippine Stock Exchange.
Bermaz has mandated MayBank ATR Kim Eng as its international and domestic lead manager and underwriter for this offering. Abacus Capital & Investment Corp. acts as the domestic co-led underwriter.
Of the total offering, 83.43 million will consist of new common shares while 71.57 million will consist of secondary shares.
The deal will bring around 15.6 percent of Bermaz’ shares to public hands. A total of 993.56 million will be outstanding after the offer, giving the company a market capitalization of P7.95 billion if the maximum price is achieved.
About P400 million or bulk of the net proceeds from the primary offering amounting to P638.5 million will be used to construct a warehouse, body repair and paint facility. The company will also allot some of the proceeds to establish a Mazda training facility for automotive repair and motor services (P50 million) and likewise construct Mazda showrooms and satellite outlets (P188.5 million).
At least 108.5 million or 70 percent of offer shares are being offered to institutional investors and the general public while 20 percent of total will be set aside for trading participants (31 million) and 10 percent for local small investors (15.5 million).
The company has a dividend policy of distributing up to 40 percent of prior year’s net income as dividends, subject to the provision of funds for business plans, operating expenses and other expansion projects.
Bermaz is also setting up an employees’ stock option plan for directors and eligible employees, which will represent 2 percent of the enlarged issued and paid-up capital upon completion of the listing and assuming full exercise of such option. –Doris Dumlao-Abadilla
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