IPO of Aboitiz Power Corporation

Initial Public Offering (IPO)

A company undertakes an Initial Public Offering (IPO) of its shares to investors for listing in the Philippine Stock Exchange. Once listed, it can then be traded (its shares can be bought and sold
in the open market) by investors and shareholders.



WHY DO COMPANIES LIST?


ADVANTAGES OF ISSUING STOCK

1) A company can raise more capital than it could borrow
2) A company does not have to make periodic payments to creditors
3) A company does not have to make principal payments


DISADVANTAGES OF ISSUING STOCK

1) The principal owners have to share their ownership with other shareholders
2) Shareholders have a voice in policies that affect company operations




General Criteria for Admission to listing


A) actual operations for at least 3 full fiscal yrs
B)Min authorized capital stock of PhP 400 Mn of which a min of 25% must be subscribed and with all subscribed shares paid in full
C) management and controlling stockholders must possess integrity and good managerial skills
D)has stability and stature in the industry or in the business community

Thanks for the INFO

"The days' market - June 13, 2007"
1 Comment -

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David Wozney said...
Re: “... the Philippine peso hovered at around PhP 46.54 level to the US Dollar ...”A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.
June 13, 2007 9:31 PM

Sector Indices II

Sector Indices - I

Composition of the PSEi (Philippine Stock Exchange Index)

Memo for brokers fron the PSE

Capital Appreciation in three years (2004-2007)

Just recently found some materials that was used for a talk three years ago in 2004. It is interesting to note how much the stock prices gained since then.

Jollibee Food Corp (JFC)
No. of shares 982 mn
Mkt. Cap PhP 19 bn
Book Value 7.64
EPS 0.93
Computed PE 21X
2003 dividends
------PhP 0.20 Nov 19
------PhP 0.15 May 14

Price (Feb 27, 2004)------------------Price (Feb 27, 2007)
PhP 19.00------------------------------PhP 55.50

Ginebra San Miguel Inc. (GSMI)
No. of shares 268 mn
Mkt. Cap PhP 8 bn
Book Value 28.39
EPS 4.65
Computed PE 7X
Dividends
------PhP 0.375/quarter or
PhP 1.50/year
4.8% dividend yield

Price (Feb 27, 2004)-----------------Price (Feb 27, 2007)
PhP 31.50-----------------------------PhP 26.00

Petron Corp. (PCOR)
No. of shares 9 bn
Mkt. Cap PhP 28 bn
Book Value 2.02
EPS 0.21
Computed PE 15X
2003 dividend
------PhP 0.20 May 26
2002 dividend
------PhP 0.15 June 03

Price (Feb 27, 2004)-----------------Price (Feb 27, 2007)
PhP 3.15-------------------------------PhP 4.80

SM Prime Holdings (SMPH)
No. of shares 9.9 bn
Mkt. Cap PhP 60 bn
Book Value 3.34
EPS 0.31
Computed PE 20X
Targetting 8-10% annual income growth rate

Price (Feb 27, 2004)-----------------Price (Feb 27, 2007)
PhP 6.10-------------------------------PhP 12.50

Metropolitan Bank and Trust Co. (MBT)
No. of shares 1.6 bn
Mkt. Cap PhP 41 bn
Book Value 33.18
EPS 1.45
Computed PE 17.6X
Dividends
------PhP 0.40 Jan 27, 2004

Price (Feb 27, 2004)-----------------Price (Feb 27, 2007)
PhP 25.00-----------------------------PhP 67.00

Meralco (MER/MERB)
Book Value 43.50
Issues: refund to customers/pending rate hike

Price (Feb 27, 2004)-----------------Price (Feb 27, 2007)
MER PhP 19.50-----------------------PhP 77.50
MERB PhP 32.00---------------------PhP 78.50

Ever Gotesco (EVER)
No. of shares 5 bn
Mkt. Cap PhP 85 mn
Book Value 0.68
EPS 0.001

Price (Feb 11, 2004)-----------------Price (Feb 27, 2007)
PhP 0.017-----------------------------PhP 0.0875

Pilipino Telephone Corporation (PLTL)

Price (Feb 11, 2004)-----------------Price (Feb 27, 2007)
PhP 1.56-----------------------------PhP 7.40


For data and information; references were Technistock Corp., the PSE and Newspaper articles.