Concepcion scales down IPO price
MANILA, Philippines - Concepcion Industrial Corp. (CIC) has scaled down the price range for its upcoming initial public offering (IPO).
In a statement during the firm’s investor briefing yesterday, CIC said the price for the upcoming offering of 86.21 million shares, including the over-allotment option, is expected to fall within the range of P25.50 to P30.50 per share.
Earlier, the firm was aiming to sell at a maximum of P31.45 per share.
CIC chief executive officer and chairman Raul Joseph Concepcion told reporters the firm has “fine-tuned the price to what is acceptable to the market.”
With the new price range, the firm expects to raise as much as P2.63 billion from the public offering.
The final price is expected to be finalized on Nov. 11.
The domestic offer period is scheduled to run from Nov. 13 to 21.
CIC is aiming to list on the Philippine Stock Exchange by Nov. 27.
Proceeds from the IPO will be used as working capital and start-up costs with a potential joint venture with Chinese firm Midea, which is engaged in the manufacture of electrical appliances.
Concepcion said in particular, about P110 million to P120 million of the funds raised from the IPO will go to the joint venture with Midea.
“We will put up the joint venture by the end of the year,” he said.
CIC supplies airconditioning and refrigeration appliances.
It operates through subsidiaries Concepcion Carrier Airconditioning Co. and Concepcion Durables Inc.