Bermaz Auto Bhd (BAuto), popularly known as “Mazda Philippines”, said it is planning to file its subsidiary in the Philippines through an initial public offering (IPO) for a listing on a Main Board of the Philippine Stock Exchange on Tuesday.
In an earlier disclosure by BAuto, BAP applied its IPO on 13th December, asking to offer 155 Million common shares priced at P1.00 apiece, demonstrating 15.6% of BAP’s enlarged issued and paid-up share capital. BAP’s IPO planned proposal comprises 83.43 Million fresh shares and 71.57 Million existing company shares that are sold by Shareholders.
On Wednesday, BAuto, the distributor of Mazda vehicles in the Philippines and Malaysia declared that Bermaz Auto Philippines, Inc. are looking for approval of the Securities and Exchange Commission (SEC) to go public.
Counting unexpected circumstances, the proposed IPO and listing could be completed by the first half of 2017. Post-IPO, BAuto’s effective interests in BAP would be routed to 52%.
Berjaya Philippines will own a 20% stake consisting of 202,866,882 shares in BAP after the IPO.
“With the proposed listing, BAP will have direct access to the equity capital market in the Philippines which will enable it to have greater capital management flexibility. The proposed listing will also enable BAP to gain recognition and enhance its corporate stature through its listing status on the Main Board of the PSE.” The company said.
The net proceeds from the sale of initial shares could be used to build warehouse, body and paint facility, setting up training facility for automotive repair and other motor services and building Mazda showrooms and satellite outlets.