San Miguel pegs IPO price at P8 a share

San Miguel Corp. has pegged the price of the initial public offering (IPO) of its beer unit at P8 per share, underwriter BDO Capital and Investment Corp. said. San Miguel lowered the price from the original range of P9.50 to P16.30 per share due to weak market sentiments. According to BDO Capital President Eduardo Francisco, San Miguel Brewery Inc. is offering 770.5 million shares: 693.47 million in secondary shares and 77 million in primary shares. San Miguel Brewery is expected to raise P6.16 billion from the IPO, which it plans to use to finance its entry into the infrastructure, mining and power sectors. San Miguel Brewery, which enjoys a 95-percent share of teh local beer market, reported a 37-percent increase in net profit during the first three months of 2008 to P2.5 billion.

in Manila Standard Today by Jenniffer B. Austria
April 26, 2008
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