PSE approves listing of Cebu Air on May 3

By JAMES A. LOYOLA
www.mb.com.ph 

The Philippine Stock Exchange (PSE) has approved the listing application of Cebu Air Inc., the airline unit of JG Summit Holdings (operating under the brand Cebu Pacific Air), set for May 3, 2010 after a planned initial public offering of shares worth a maximum of P25.73 billion.

According to the PSE, Cebu Air is listing up to 728.22 million common shares of which 582.57 million are outstanding prior to the IPO while 125,25 million will be issued during the IPO and 20.4 million will be sold to the company’s executives and employees.

Cebu Air is planning an IPO consisting of 125.25 million new shares while current shareholder CPAir Holdings is selling 110.31 million shares plus 35.33 million shares under an over-allotment option.

The airline said 164.89 million shares will be sold overseas outside of the United States, 47.11 million shares are being sold through brokers of the PSE while 25.56 million shares have been allocated for local small investors.

Cebu Air has given an indicative price of P95 per share although the actual offer price will not be set until April 16, 2010 after a domestic roadshow on April 5, an international roadshow and bookbuilding process from April 6 to April 16.

The IPO will start with the sale of shares via trading participants of the PSE which are to submit commitments from April 19 to April 22 with the domestic offer ending on April 26, 2010.

The airline has tapped Deutsche Bank AG, Hong Kong Branch and J.P. Morgan (S.E.A) Limited to be the international lead underwriters for the issue while ATR KimEng Capital Partners is the domestic lead underwriter. Read more...