Century Pacific Food IPO overpriced - analyst

Posted at 04/21/14 12:25 PM

MANILA (UPDATE) - An equities analyst said canned food manufacturer Century Pacific Food Inc.'s initial public offering looks "expensive."

On Monday, Century Pacific set the price for its IPO at P13.75 per share, on the higher end of its price guidance released over a week ago. It had earlier set a price range of P12.50-P14.50 per share for its IPO.

"Basically the P/E ratio is quite high, about 40 times P/E compared to its peers, around 22 times. In terms of P/E, it's quite expensive. Although investors have to check the growth potential of the company. If investors think the growth potential of the company is quite high, in that case the pricing is expected," Joyce Ramos, equity analyst at AB Capital Securities, told ANC.

Century Pacific Food, whose brands include Century Tuna, Argentina Corned Beef, 555 Sardines, Swift, and Birch Tree, will be the country's second IPO this year.

The offer period starts on April 23 and listing is set for May 6.

Mornings@ANC, April 21, 2014