18-Oct-2010 8:55 AM

Cebu Pacific domestic offering over-subscribed

Cebu Pacific IPO domestic lead underwriter, ATR KimEng Capital Partners, Inc, announced (15-Oct-2010) the domestic portion of the offering, amounting to PHP7 billion (USD161.7 million), has been over-subscribed by local brokers and investors prior to the end of the domestic offering period. This follows a notice that the PSE Trading Participants (TPs) have committed to take up 96% of their allocation amounting to 37.3 million Cebu Air common shares with an offer value of PHP4.7 billion (USD108.5 million). With additional orders from brokers and other investors, the balance of the PSE’s TP allocation has now been fully sold. In relation to the portion allocated to local small investors (LSIs), ATR Kim Eng also announced that the syndicate of domestic underwriters it organised has an adequate number of investors that are ready to purchase any shares that will remain unsold from the original amount allocated to them. Philippine regulations require that at least 10% of any initial public offer should be allocated to LSIs. The offer to LSIs remains open until 18-Oct-2010. LSI applicants are allowed to subscribe up to PHP25,000 (USD577) worth of Cebu Air, Inc. shares. Last week, the international tranche of the IPO amounting to PHP16.4 billion (USD378.8 million) was fully subscribed by foreign fund managers. The joint global coordinators, bookrunners and international lead managers, Citigroup Global Markets Limited, Deutsche Bank AG and JP Morgan Securities Ltd, reported strong investor demand that resulted in the international tranche being multiple times oversubscribed by institutional investors internationally. Cebu Air priced its IPO at PHP125 per share, which was at the top half of the pricing range of PHP110-135 per share. [more]

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