MANILA - Global Ferronickel Holdings Inc, the Philippines' No. 3 nickel producer, has cut the size of a planned share sale to $300 million to $400 million from an initial target of $600 million, with premarketing to start in April, IFR reported on Wednesday.
A source familiar with the transaction confirmed the IFR report, but gave no other details. A revised prospectus was filed with the Philippines' Securities and Exchange Commission (SEC) early on Wednesday, the source said.
"We decreased the number of secondary shares up for offer," the source told Reuters.
In its preliminary filing to the SEC, Global Ferronickel had planned to issue 6.2 billion shares at the maximum price of 4.38 pesos each to raise as much as $600 million. Citing an unnamed source associated with the transaction, IFR, a Thomson Reuters publication, said the maximum price was likely to be reduced.
Shares of Global Ferronickel were unchanged at 2.31 pesos as of 0535 GMT.
The final timetable will be announced after the regulatory approval, IFR said. Global Ferronickel originally planned to launch the offer this month but failed to get regulatory approvals on time, citing a delay in its financial report.
UBS is the sole bookrunner while Maybank and Religare Capital Markets are the co-lead managers.
Global Ferronickel has had talks with potential cornerstone investors that include some of its top customers such as trading companies and end-users in China.
Formerly called Southeast Asia Cement, a listed dormant holding firm that was taken over by unlisted Platinum Group Metals Corp last year, Global Ferronickel extracts ore from its Cagdianao mine in Surigao del Norte province in southern Philippines.