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Tag: ipo

  • Del Monte seeks to raise up to $333m via IPO

    Del Monte seeks to raise up to $333m via IPO

    Del Monte Philippines Inc, the wholly-owned Philippine subsidiary of global branded food and beverage firm Del Monte Pacific Limited, has received approval from the Securities and Exchange Commission (SEC) to raise up to P17.55 billion (about $333 million) via an initial public offering (IPO).

    This would mark the second IPO in the Philippines so far this year following the approval by the SEC of the IPO application of construction and property developer DM Wenceslao early this month. The Philippine Stock Exchange (PSE) is still optimistic of having eight IPOs in the entire year.

    In a statement released on Thursday, the SEC said it has approved Del Monte’s IPO, which involves 587.437 million secondary shares to be sold at P29.88 ($0.57) per share. This represents 21 per cent of the firm’s outstanding capital stock.

    “The company will not directly receive any net proceeds from the offer… no amount of the proceeds will be used to reimburse any officer, director, employee for services rendered, assets previously transferred, money loaned or advanced, or otherwise,” the country’s corporate regulator said.

    Del Monte Pacific earlier said it intends to use the proceeds from the offer to partially prepay or repay certain loan facilities.

    “The balance of proceeds, if any, will be used for general corporate purposes. The prepayment of such loans will allow the Del Monte Pacific Limited Group to deleverage and strengthen its balance sheet,” Del Monte Pacific said.

    According to the SEC document, about 70 per cent of the offer shares is earmarked to be sold to domestic investors, while the remaining 30 per cent will be sold to foreign institutional and retail investors.

    Del Monte Philippines is engaged in the production and sale of food and beverage products – such as fruit juices and juice drinks, packaged pineapple and mixed fruit, various tomato, spaghetti sauces and culinary mixes – in the Philippines under the Del Monte brand and exports these products under the S&W brand.

    It also operates one of the world’s largest fully-integrated pineapple operations and has been growing and processing pineapple for over 90 years.

    The PSE expressed confidence that at least eight IPOs will be conducted this year even as only two firms have filed IPO applications with the SEC so far – Del Monte and DM Wenceslao.

    The PSE posted a net income of Php825 million ($16 million) for the full-year 2017, an increase of 18 per cent from the Php702 million it generated in 2016, according to the unaudited consolidated financial statement posted on its website.

  • Xiaomi files documents for IPO in Hong Kong

    Xiaomi files documents for IPO in Hong Kong

    Chinese smartphone giant Xiaomi has filed documents for an IPO on the Hong Kong stock exchange that could see the company raise at least $10 billion in the biggest public offer since 2014.

    The IPO is expected to value the company at between $80 billion and $100 billion, according to data and analysis company GlobalData. This would make it the largest IPO since Alibaba’s $25 billion public listing in 2014.

    GlobalData consumer technology analyst Avi Greengart said the listing would give Xiaomi the infusion of capital it will need to pursue an expansion to the West.

    “Xiaomi has long planned to enter the US. For now it is targeting Europe, starting with Spain, and we will be closely monitoring how the brand and its business model translates well outside of China,” Greengart said.

    “Xiaomi has said it plans to enter the US market ‘next year’ for the past three years. The US is famously unfriendly to Chinese brands right now. The bigger challenge is that carriers are the gatekeepers, the market is skewed heavily towards premium smartphones, and US consumers have expectations around brand and software that Xiaomi may have difficulty meeting.”

    The vendor’s “fascinating” business model involves selling phones in high volumes at low margins, and started with online-only operations, Greengart said.

    “However competitors such as Huawei eventually countered with online-only brands of their own, and Xiaomi was unprepared. The company was able to successfully regroup and move into retail outlets as well as online. Xiaomi’s also thinks of itself as an incubator and IoT ecosystem vendor, investing in dozens of start-ups selling everything from air cleaners to fitness bands to Segways.”

    Xiaomi’s IPO documents [PDF] show that the company recorded a 67.5% increase in revenue in 2017 to 114.62 billion yuan (HK$141.36 billion). But the company swung to a net loss of 43.89 billion yuan from a profit of 491.6 billion yuan in 2016.

    The company already has a presence outside of China, having rapidly grown to the top smartphone brand in India, IDC estimates. The research firm also puts Xiaomi at the number four spot globally in terms of smartphone market share, behind Samsung, Apple and Huawei.

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  • Pizza Hut Indonesia plans IPO

    Pizza Hut Indonesia plans IPO

    Pizza Hut Indonesia operator Sarimelati Kencana is planning an IPO to raise US$58.7 million.

    Sarimelati Kencana runs 237 Pizza Hut Restaurants and 156 delivery outlets across 76 centres in Indonesia.

    The company said, it will offer up to 604.375 million new shares each priced between Rp 1100-1350 (US 8-10 cents).

    Sarimelati Kencana director Jeo Sasanto says two-thirds of the funds raised will be used to expand the Pizza Hut Indonesia network and to renovate existing stores.

    The company has already commenced a book-building period which is scheduled to close on May 3, with the shares to start trading on May 23.

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  • Meilishuo on the search for IPO in New York

    Meilishuo on the search for IPO in New York

    Online fashion retailer Meilishuo, backed by Tencent Holdings, is seeking an IPO in the US that could value the start-up at about US$4 billion.

    Many tech corporations in China opt for New York for their debut listings as it offers a wide investor base and higher international profile.

    Meilishuo is reported to be talking with investment banks about the move.

    Founded in 2009, the company sells clothes, shoes and handbags. In 2016 it had about 15,000 merchants on its website and a mobile app that had been downloaded 100 million times. That year it merged with rival Mogujie, which was founded in 2011 and had about 130 million registered users. The re-formed company was valued at $3 billion.

  • Indonesia’s Go-Jek Considering IPO, Timeframe Undecided

    Indonesia’s Go-Jek Considering IPO, Timeframe Undecided

    Indonesian start-up Go-Jek is considering an initial public offering, president Andre Soelistyo said on Monday (05/03), but details on timing and float size haven’t been decided yet.

    Andre met with Indonesia Stock Exchange chief executive on Monday to discuss the potential share sale, including a regulatory requirement to be profitable within two years of listing.

    “We discussed what technology companies need [to do an IPO] and how [the exchange] can provide access,” he said.

    Andre also raised the possibility of a dual-listing after Indonesia, but said a decision on where hasn’t been made.

    Go-Jek is yet to appoint an underwriter for the plan, Andre said, in a sign that details around IPO size, company valuation and how much of the firm will be listed are some way off.

    Go-Jek delivers everything from meals and groceries to cleaners, masseuses and hairdressers across Indonesia’s capital city Jakarta, all at the touch of a smartphone app — helping it become a crucial workaround in a city with some of the worst traffic in the world.

    Bankers have listed Go-Jek’s potential IPO as a key float to track in Asia’s ride-hailing and mobile payments market, which has caught the attention of global investors.

    Go-Jek raised a higher than targeted $1.5 billion in a fundraising round from several investors including Google, Temasek Holdings and Chinese technology giants Tencent Holdings and JD.com, sources said last month.

    The latest round of investments valued Go-Jek at about $5 billion, the sources said.

    Rivals Grab and Uber are backed by Japan’s SoftBank Group.

    Go-Jek plans to expand its business beyond Indonesian borders by setting up operations in the Philippines in early 2018, with other Southeast Asian countries to follow later that year, it’s chief technology officer said in December.

    On top of that, Go-Jek has said it will roll out new services soon, including installing charging stations in retail outlets that users can access through their app. The company also plans to launch a laundry pick-up and delivery service to their already extensive services.

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  • Taiwan tea brand retailer charts path to sales growth

    Taiwan tea brand retailer charts path to sales growth

    B&S chairman and chief executive Andrew Chan Kam-chuen, said last week that a new TenRen tea outlet will be opened in Ma On Shan next month in addition to its existing 32 outlets. Another eight branches will be opened in the fiscal years of 2019 and 2020.

    Chan also said the company will assess the market before raising the price of TenRen’s menu and ensure the balance of profit and market response. The average price of TenRen tea products is HK$20.30.

    He added that although rents and staff costs are high, prices of materials and ingredients for beverages are reasonable.

    Chan said the company will focus on further developing its newly-introduced brands and look for more overseas popular brands. He said B&S will first explore Guangdong province when considering expansion.

    The retailer which has the right to self-operate the popular takeaway beverage brand TenRen in Hong Kong opened its retail book last Monday to raise up to HK$100 million by issuing a total of 100 million shares at a price range of 80 HK cents to 100 HK cents.

    The minimum investment for one board lot of 4,000 shares is HK$4,040.31.

    Capital raised through the initial public offering will also be used to lease, set up new warehouse facilities, upgrade the enterprise resource planning system, hire three more marketing sales people as well as for general working capital purposes.

    With over 27 years of operating history in Hong Kong, the food and beverage company’s business portfolio also includes distribution. Its top products include UHA and Hsin Tung Yang.

    To attract overseas brand owners and local retailers, B&S provides supply chain solutions in its distribution operation, including arranging inbound logistics, relabelling the products to comply with relevant Hong Kong food safety and labelling laws, repackaging the products to suit the needs of retailers or the consumers, and formulating marketing and sales strategies.

    TenRen, which has a presence at bookstore Eslite, is the largest revenue contributor in the retail business, which accounted for 92.2 percent of income. With a market share of 24.3 percent, the premier Taiwanese tea-based beverage brand has opened retail outlets in Taiwan, Japan, Singapore, Malaysia, Hong Kong, Canada, Australia, and North America.

    B&S International primarily offers takeaway drinks at its 32 self-operated retail “TenRen” tea outlets, including the milk tea series, the classic tea series, the fresh juicy tea series, the icy drink series and the winter decaf series.

    Other products include tea-flavored ice-cream, packaged tea leaves, packaged snacks as well as tea ware.

    Apart from TenRen, B&S also operates Japanese cheesecake retail outlets Uncle Tetsu and British luxury chocolate brand Hotel Chocolat in Hong Kong, although the latter two did not contribute significantly to its profit.

    Its three licensed Japanese cheesecake retail outletsUncle Tetsu in Hong Kong contributed up to 9.4 percent of revenue in the past several years. It mainly offers cheesecakes, cheese tarts, and panna cotta.

    Three retail shops of Hotel Chocolat, a recently set up British chocolate brand in Hong Kong, has not made a significant contribution yet.

    The company has a very high debt-to-assets ratio. The gearing ratio exceeded 109.8 percent in the past three years.

    Net profit and revenue have grown in the past three years, but B&S considers cashflow as a risk as it may be subject to a liquidity gap due to mismatch in time between receiving payments from customers and payments to suppliers. Its trade receivables turnover days are up to 103.5 days and trade payable turnover days are up to 13.1 days.

    As a result, it has to rely on internal resources and bank borrowings to maintain cashflow and to fund daily operations.

    “If we fail to manage the cashflow mismatch or if the mismatch increases, we may have higher funding requirements either from our internal resources or from bank borrowings to meet our payment obligations and our results of operations and financial condition may be materially and adversely affected,” the company says in the IPO prospectus.

    Lego Corporate Finance Limited is the sole sponsor. Lego Securities Limited is the sole global coordinator and one of the joint bookrunners. Kingsway Financial Services Group Limited is one of the joint bookrunners and one of the lead managers.

  • Eight Firms Eye Q1 IPOs at Indonesia Stock Exchange

    Eight Firms Eye Q1 IPOs at Indonesia Stock Exchange

    Eight companies are currently preparing for initial public offerings in the first quarter this year, Samsul Hidayat, a director at Indonesia Stock Exchange said Monday (06/02).

    So far this year, only one company has completed an IPO at the exchange, which is aiming to list more than 35 new companies in 2018.

    Among the eight companies in the pipeline are power company Sky Energy Indonesia and BTPN Syariah, the Islamic banking unit of mid-size lender Bank Tabungan Pensiunan Nasional (BTPN), Hidayat said.

    He did not disclose the potential sizes of the new IPOs.

    In 2017, 37 companies launched IPOs, raising a combined 9.6 trillion rupiah ($710.06 million) in proceeds, according to data from Financial Service Regulator (OJK).

    That compared to 14 companies in 2016, which raised a combined 12.1 trillion rupiah.

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  • Rubber giant plans IPO

    Rubber giant plans IPO

    Việt Nam Rubber Group is expected to list its shares on the HCM Stock Exchange in June or July after its initial public offering on February 2.

    Phạm Văn Thành, head of VRG’s planning and investment department, revealed the IPO road map at an event on January 18.

    The corporation will auction 475 million shares, equivalent to 11.88 per cent of its total chartered capital of VNĐ40 trillion (US$1.76 billion).

    A similar number will be offered to strategic investors with 831,000 shares earmarked for employees and the trade union.

    The State will retain three billion shares or 75 per cent of the capital after equitisation. The minimum price for the auction has been set at VNĐ13,000.

    Investors have to submit their bids by January 31.

    A month after the IPO, VRG would list on UPCoM, and by June or July at the latest in HCM Stock Exchange, Thành said.

    Last year, the group achieved VNĐ3.6 trillion in net profit on revenues of VNĐ19 trillion, easily achieving the targets it had set at the beginning of last year. The group’s core business is natural rubber, which brings around 70 per cent of its total revenues.

    According to a Vietcombank Securities (VCBS) report, VRG enjoyed a good year in 2017 thanks to the strong global recovery in natural rubber prices.

    VCBS has a positive outlook for the group in 2018 since the price of rubber will still remain high.

    Besides, old rubber trees would be a large source of income, the report said.

    VCBS has recommended a reasonable price of VNĐ16,660 for the share in the IPO.

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  • Xiaomi IPO plan reportedly eyes $200b valuation

    Xiaomi IPO plan reportedly eyes $200b valuation

    Planning to go public late this year, Chinese smartphone maker Xiaomi Corp is said to be seeking a valuation of up to US$200 billion.

    Based in Beijing, the electronics and software company prefers Hong Kong over New York for its listing mainly because Hong Kong retail investors are more familiar with its products and founder as reported.

    Xiaomi chairman/founder Lei Jun started liaising with investment banks in November, according to media reports in China. Also, senior executives have told several employees of the impending public issue, reports News.163.com.

    The company was valued at $46 billion in its latest funding round in 2014. After declining sales in 2016, the company managed to revive growth last year, partly by opening offline retail stores and expanding its presence internationally, especially in India.

    In the third quarter of last year, Xiaomi caught up with Samsung to become the largest smartphone brand in India. It had 23.5 per cent of the market with a shipment of 9.2 million units, marking a 300 per cent year-on-year jump, data from research company International Data Corp shows.

    Xiaomi says it topped its annual revenue goal of RMB100 billion (US$15 billion) by the end of October.

    Should it reach US$200 billion valuation, Xiaomi would be the biggest technology IPO after Alibaba Group Holding, which raised a record $25 billion for a $231.4 billion market value in 2014.

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  • Vietnam plans to raise over $570 million through IPOs in energy firms

    Vietnam plans to raise over $570 million through IPOs in energy firms

    Vietnam hopes to raise a total of more than $570 million by selling stakes in an oil refinery, an oil distribution firm and a power company, the government website said on Saturday.

    The country has accelerated its privatization program in recent weeks, partly because of the need to fund a budget deficit and in the face of growing public debt.

    Vietnam aims to raise at least $297 million by selling a 20 percent stake in PetroVietnam Power Corporation and at least $155 million by selling 7.79 percent of the Binh Son Refining and Petrochemical company, the government said.

    In addition to the sale of those shares in initial public offerings (IPOs), the government said it planned to sell a 28.9 percent stake in the power company and a 49 percent stake in the refinery to strategic investors.

    The government also approved an earlier planned IPO in oil distribution firm PetroVietnam Oil Corp (PV Oil), aiming to raise at least $122 million by selling a 20 percent stake.

    The three share sales are expected within three months, the government said, without giving more precise details of the timing.

    Last month, Vietnam unveiled plans to sell a stake of up to 54 percent, worth $5 billion, in the nation’s biggest brewer, Sabeco, in what is set to be the country’s largest privatization yet.

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  • Thai Converse distributor eyes IPO for retail expansion

    Thai Converse distributor eyes IPO for retail expansion

    Converse’s Thai distributor looks to expand its presence in Thailand and globally with funds raised via the Bangkok firm’s stock exchange launch in the Asian nation in 2017.

    Rich Sport, Thailand’s sole distributor of Converse shoes and apparel, has submitted a filing for an initial public offering on the Stock Exchange of Thailand in 2017.

    The Thai manufacturer and distributor hopes to raise funds to grow its business internationally, according to the filing, and has appointed Finansia Syrus Securities to advise the IPO.

    The IPO is the 14th stock debut in Thailand from a local firm this year, according to Dealstreet Asia.

    Getting down to details, Rich Sport will issue 200 million IPO shares, or 26 per cent of capital. From this, 195 million shares will be offered to the public while the remaining 5 million will be allotted to employees and subsidiaries, added the filing.

    The company has a total capital made up of 770 million shares, with paid-up capital of 570 million shares at a par value of one baht each, it said.

    At present, Rich Sport owns 30 per cent of shares, with three members of the Wongpaitoonpiya family owning 23.33 per cent each. After the IPO, Rich Sport’s share will be lessened to 22.21 per cent.

    Rich Sport has been a maker and distributor of the Converse brand in Thailand for 14 years. Rich Sport currently oversees 41 Converse shops in Thailand and 11 points-of-sales inside local department stores there.

    The firm reported revenue of 601.12 million baht ($18 million) and net profit of 122.16 million baht ($3.65 million) for the first six months of the year.

    Founded in 1908, Converse is one of America’s most iconic footwear companies, and has been a subsidiary of Nike since 2003.

    It is known for its products under the trade names Cons, Chuck Taylor All-Star John Varvatos, and Jack Purcell.

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  • Uber IPO ‘target’ is 2019

    Uber IPO ‘target’ is 2019

    Uber is on track for a 2019 public stock offering and the plan is not dependent on new funding from Japan’s SoftBank, the global ride-sharing giant’s CEO said Thursday.

    Speaking at a New York Times conference, Dara Khosrowshahi said “2019 is the target” and that co-founder and former CEO Travis Kalanick and the rest of the board agree on the plan for an initial public offering.

    “We have all the disadvantages of being a public company as far as the spotlight on us without any of the advantages of being a public company,” he said during an on-stage interview.

    “So Travis and the whole board now agree we should just go public. The numbers support it, the systems support it and the fact is that if you set up the company in the right way and you are honest and plain spoken to your investors about being a long-term player … you will find that right set of shareholders who will support it.”

    Khosrowshahi took the helm at Uber in August after it was rocked by a series of scandals and missteps, and pledged to change the culture which had sometimes been described as “toxic.”

    He said an investment from Japanese tech giant SoftBank — a deal which has taken longer than expected to seal — remains in the works and is unrelated to the IPO plans.

    “It hasn’t happened yet, but it will,” he said.

    SoftBank, which has amassed a $100 billion fund for technology startups, is widely expected to become a major investor in Uber although the discussions have not yet produced an agreement.

    Khosrowshahi said SoftBank has not made any demands about an IPO.

    “If you talk to SoftBank they don’t have any particular interest in going public. They are the ultimate long-term investor,” he said.

    The CEO said he sees Uber, which has lost vast amounts of money, still on a road to profitability in the long-term.

    Uber still subsidizes rides in most areas to get footholds in markets, he said, while noting that “over a period of time we can pull back on the subsidies” and make a profit.

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  • AirAsia Philippines will seek US$250mil IPO

    AirAsia Philippines will seek US$250mil IPO

    The Philippines unit of AirAsia Bhd is seeking to raise up to US$250 million via an initial public offering (IPO) in mid-2018 to fund its expansion programme, its chief executive said on Tuesday.

    Asia’s biggest low-cost airline, which has nine units in the region, is beefing up its fleet in the Philippines amid an expected long-term boom in budget air travel. AirAsia first raised the prospect of listing its Philippines unit in 2015, planning at that point to take the airline public as early as 2017.

    “We are working on the IPO, hopefully in the middle part of next year,” Philippines AirAsia CEO Dexter Comendador told Reuters.

    Philippines AirAsia had initially aimed to raise US$200mil but raised its target to fund purchases of more aircraft and to expand its route network, Comendador said.

    The airline, which started Philippine operations in 2012, hired BDO Capital and Investment Corp as its underwriter.

    Its fleet will reach 70 aircraft in the next 10 to 15 years from the current 17, Comendador said. AirAsia is one of the largest customers of the Airbus A320-family of jets.

    The airline has a 10% share of the air travel market in the Philippines, one of the world’s fastest growing economies. The local market is dominated by Cebu Pacific, followed by flag carrier Philippine Airlines, both owned by local tycoons.

    AirAsia has also said it is considering a potential IPO of its Indonesian arm.

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  • India’s Barbeque Nation plans to launch IPO

    India’s Barbeque Nation plans to launch IPO

    Bengaluru-based restaurant chain Barbeque Nation Hospitality aims to raise about Rs700 crore (US$109 million) through an IPO.

    Draft documents filed with the Securities and Exchange Board of India say the offer comprises a fresh issue of up to Rs200 crore as well as an offer for sale of up to 6.2 million equity shares by company’s promoters.

    The company says it plans to use the funds raised to expand nationally, as well as repay loans.

    At the end of June, the company ran 81 Barbeque Nation restaurants in 42 cities in India plus one in Dubai.

    Domestic investor CX Partners is likely to sell the bulk of its holding in the company, according to the draft prospectus.

    According to Deal Street Asia, the casual-dining chain has acquired the master franchisee rights to India for US burger chain Johnny Rockets.

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  • MyRepublic planning IPO by end-201

    MyRepublic planning IPO by end-201

    Singapore-based MyRepublic is gearing up to conduct an IPO by the end of next year, and use the funds to expand its operations to cover at least 10 countries in the next five years.

    In a media briefing, MyRepublic said it is currently exploring listing on the Singapore, Hong Kong and/or Australian stock exchanges.

    MyRepublic is meanwhile planning an entry into the Singapore mobile market in the fourth quarter and expects to subsequently expand its mobile operations to other parts of the region by next year onwards.

    The company is likewise planning to launch TV services in the region, bcoming a quad-play provider.

    MyRepublic currently operates in Singapore, Indonesia, Australia and New Zealand, and is evaluating expanding to Myanmar, Sri Lanka, Vietnam, Myanmar, the Philippines, Thailand, Cambodia and Malaysia. By June, the company reached 200,000 broadband subscribers across the region.

    The company leverages NBN rollouts in the markets with strategic deployment of passive infrastructure to remain infrastructure agnostic and enable rapid expansion at a low cost of market entry.

    MyRepublic said it can enter a new market in 60 days and launch new products in three months. The company has entered a new market every year since 2014 and turns ebitda-positive within two years of entering each new market.

    At the briefing MyRepublic also denied reports that the company is pursuing an acquisition of Singapore’s M1. While the operator has put in a bid, it is not pursuing the acquisition, the company said, noting that while M1 is a traditional telco, MyRepublic is an “internet platform company.”

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