MANILA, Philippines – Bermaz Auto Philippines Incorporated, the exclusive distributor of Mazda vehicles in the Philippines, filed an application with the Securities and Exchange Commission (SEC) to raise as much as P1.24 billion via initial public offering (IPO).
Documents obtained from the SEC showed that Bermaz Auto will offer 155 million primary and secondary shares at an offer price of up to P8 per share in March 2017.
The offer shares represent 15.6% of the company's total outstanding capital stock after the IPO.
Net proceeds from the sale of primary shares will be used to fund construction of a warehouse and body repair and paint facility, the establishment of a Mazda training facility for automotive repair and motor services, and construction of Mazda showrooms and satellite outlets.
The expected offer period for the company's maiden share offering has been scheduled from March 15 to March 22, while listing date is tentatively March 28.
The company hired Maybank ATR Kim Eng as the international and domestic lead underwriter and Abacus Capital as domestic co-lead underwriter. (READ: Berjaya PH acquires control of UK car dealer)
Bermaz Auto is the sole distributor of Mazda vehicles in the country. It currently distributes a total of 27 variants.
The company is 60.4% owned by Bermaz Motor International Limited of Malaysian conglomerate Berjaya Corporation and 25.5% by listed firm Berjaya Philippines Incorporated.
For the first 6 months of the fiscal year covering May to October 2016, Bermaz Auto reported a net income of P216.2 million, slightly higher than the P199.4 million reported in the same period a year ago.
During this period, the company sold 2,301 units.
Bermaz Auto began operations on January 2, 2013, with 13 dealerships located nationwide.
At present, it has 18 dealers, of which 6 are in Metro Manila. Two additional dealerships are under construction in Butuan and General Santos.
Bermaz Auto is the second company to file an IPO application with the SEC this month.
Last week, Pure Energy Holdings Corporation, an investment holding firm engaged in renewable power and bulk water supply and distribution projects, sought SEC approval to raise P1.58 billion.
Pure Energy plans to sell 930 million common shares with an option to sell another 46.5 million shares at an offer price of up to P1.62 per share. – Rappler.com