MANILA, Philippines - JG Summit Holdings Inc. has increased the size of a planned initial public offering (IPO) of its budget airline unit to up to P32.2 billion ($715 million), but has not set the timing of the sale.
Cebu Air Inc., which operates Cebu Pacific airline, had previously planned a P25.7 billion offering, but shelved it earlier this year citing uncertainties related to the national elections in May.
"Cannot comment on timing," senior vice president for corporate planning BJ Sebastian said in a text message, adding the timing would depend on approvals from the securities regulator and the stock exchange.
Shares of JG Summit have surged about 170% so far this year, the best performer among the big cap stocks in the Philippine market, on expectations of big gains from its airline IPO. The main stock index has gained about 17% this year.
In June, company president Lance Gokongwei had said the IPO might not happen in 2010, "but at some point we would like it to be a listed company."
Cebu Air, which flew the most number of passengers locally in the first quarter this year based on government data, is looking to raise up to P32.2 billion by selling almost 215 million new and existing shares, including an overallotment allocation, at a maximum price of P150 each.
While the number of shares on offer is lower than the previous plan of 271.10 million, the maximum price has been raised from P95.
In a filing to Securities and Exchange Commission, the company said 70% of its firm offer shares of 186,637,200 would be available to foreign investors. The sale has an overallotment allocation of 27,995,600 shares.
Deutsche Bank and JP Morgan are joint global lead managers for the share sale, and ATR KimEng Capital Partners is the local lead underwriter.