San Miguel's domestic brewery lists up 3.75 pct
MANILA, May 12 (Reuters) - San Miguel Corp's (SMC.PS) (SMCB.PS) flagship domestic brewery rose on its market debut on Monday, opening at 8.30 pesos (19.5 U.S. cents) per share against an IPO price of eight pesos per share.
The brewery is the crown jewel in the empire of Southeast Asia's biggest food and drinks conglomerate. The parent company floated just five percent of the brewery's stock to raise $147 million after turbulent market conditions forced the company to twice cut the price.
The IPO price was at the bottom of an eventual 8-11 pesos price range. Sources said the overseas offer, about 70 percent of the total, was 1-½ times covered while the domestic issue was also oversubscribed.
By 0134 GMT, the shares (SMB.PS) were trading at 8.1 pesos.
The IPO price values San Miguel Brewery, the Philippines top beer producer, at 13.7 times forward earnings, still at a premium to the local market, which is trading around 10 times, but broadly in line with regional peers.
San Miguel Brewery contributes around 40 percent of group operating profit and posted a 37 percent increase in net profit in the first quarter to 2.5 billion pesos ($58.7 million) on net sales up 13 percent.
The IPO values the beer business at $2.9 billion. It is the only big listing scheduled for this year.
Japan's Kirin (2503.T) holds about 20 percent of San Miguel stock. ($ = 42.6 pesos) (Reporting by Rosemarie Francisco; Editing by Raju Gopalakrishnan and Louise Heavens)
