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APAC IPOs & Placements

Zhen Zhou, Toh

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

San Miguel Food and Beverage / Equity Capital Markets

<p><a href="https://www.smartkarma.com/entities/22728" target="_blank" data-smartkarma-citation="entities:22728:1">San Miguel (SMC PM)</a> looking to sell 523m (including 174.3m upsize option) <a href="https://www.smartkarma.com/entities/22934" target="_blank" data-smartkarma-citation="entities:22934:1">San Miguel Food and Beverage (FB PM)</a>'s shares with a 15% over-allotment option, downsized from the initial 1.02bn size. The selldown is part of SMC's effort to improve liquidity in FB and comply with the minimum public ownership rule.</p>
<p>The deal scores well on our placement framework owing to its strong fundamentals, inexpensive valuation, and a good track record. The deal provides an opportunity to get exposure to a market leader in various markets in the Philippines. In our previous note, our valuation was based on bullish assumptions whereas in our revised SOTP valuation here, it suggests that there is a decent 8% potential upside from the bottom end of the price range, however, the top end implies a 3% downside. There is also a good chance that the company will be included in the MSCI Philippines Index on the back of an increased float. </p>
<hr>
<div class="content-highlight">
<h2>Placement specifics </h2>
</div>
<table class="table table-striped">
<tbody>
<tr>
<td>Company Name</td>
<td style="text-align: center;">San Miguel Food and Beverage Inc</td>
</tr>
<tr>
<td>Ticker</td>
<td style="text-align: center;">FB PM Equity</td>
</tr>
<tr>
<td><strong>Deal nature</strong></td>
<td style="text-align: center;"><strong>Secondary offering / Re-IPO</strong></td>
</tr>
<tr>
<td><strong>Bookrunners</strong></td>
<td style="text-align: center;"><strong>JPM, MS, DB, UBS, GS, BDO, BPI</strong></td>
</tr>
<tr>
<td><strong>Indicative deal price</strong></td>
<td style="text-align: center;"><strong>PHP85 - 95</strong></td>
</tr>
<tr>
<td>Last Traded Price</td>
<td style="text-align: center;">PHP85.5</td>
</tr>
<tr>
<td>Implied placing premium</td>
<td style="text-align: center;">1% discount - 11% premium</td>
</tr>
<tr>
<td>Offer Size (m) (assuming full upsize option + 15% over-allotment)</td>
<td style="text-align: center;">
<p>USD947/PHP51,119</p>
</td>
</tr>
<tr>
<td>ADV (m)</td>
<td style="text-align: center;">USD1.5/PHP78.9</td>
</tr>
<tr>
<td style="text-align: left;">Current Shares Outstanding (m): </td>
<td style="text-align: center;">5,909.2</td>
</tr>
</tbody>
</table>

San Miguel (SMC PM) looking to sell 523m (including 174.3m upsize option) San Miguel Food and Beverage (FB PM)'s shares with a 15% over-allotment option, downsized from the initial 1.02bn size. The selldown is part of SMC's effort to improve liquidity in FB and comply with the minimum public ownership rule.
The deal scores well on our placement framework owing to its strong fundamentals, inexpensive valuation, and a good track record. The deal provides an opportunity to get exposure to a market leader in various markets in the Philippines. In our previous note, our valuation was based on bullish assumptions whereas in our revised SOTP valuation here, it suggests that there is a decent 8% potential upside from the bottom end of the price range, however, the top end implies a 3% downside. There is also a good chance that the company will be included in the MSCI Philippines Index on the back of an increased float. 


Placement specifics 




Company Name
San Miguel Food and Beverage Inc


Ticker
FB PM Equity


Deal nature
Secondary offering / Re-IPO


Bookrunners
JPM, MS, DB, UBS, GS, BDO, BPI


Indicative deal price
PHP85 - 95


Last Traded Price
PHP85.5


Implied placing premium
1% discount - 11% premium


Offer Size (m) (assuming full upsize option + 15% over-allotment)

USD947/PHP51,119



ADV (m)
USD1.5/PHP78.9


Current Shares Outstanding (m): 
5,909.2




Philippines Stock Exchange PSEi Index (PCOMP INDEX)

San Miguel Re-IPO Valuation - Decent Upside from the Low-End of the Price Range