Businessman Anthony Ng scrapped the P4.5 billion initial public offering (IPO) of North Star Meat Merchants (NSTAR) because he found the buy offers too low.
Nilangaw! Anthony Ng gets cold feet, defers North Star Meat’s P4.5B IPO due to poor demand
A Babbler said NSTAR’s joint underwriters and bookrunners, BDO Capital & Investment and China Bank Capital, were only getting bids of P6.50 to P8.50 per share since the start of its book building (the process to determine the IPO price) on June 2.
This meant Ng would only raise P2.9 billion to P3.8 billion of his targeted proceeds of P4.5 billion at P10 per share.
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“It’s surprising why NSTAR would blame inflation when the real reason is the owner felt investors were lowballing him,” the babbler said.
Ng blamed “increased market volatility amidst inflationary concerns” for abandoning the IPO.
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He advised the Philippine Stock Exchange (PSE) on his decision to ditch NSTAR’s IPO on June 6 or two days before the final price setting on June 8.
Ng had planned to raise up to P3.6 billion for NSTAR’s expansion (360 million primary shares) and P900 million (32 million secondary shares and an over-allotment option of 58 million secondary shares) for his own pockets from NSTAR’s IPO.
BDO and China Bank are both owned by the Sy family who also controls NSTAR’s major retail partners SM and Waltermart supermarkets.
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