Emperador [EMP] looking to raise P37-B in Singapore-based secondary offering
Emperador [EMP 12.60 4.13%] said that it is evaluating a secondary offering in Singapore to raise SGD $1 billion (~P37 billion) and help fuel the expansion of its international brands in foreign markets.
EMP has scheduled P1.5 billion in capex this year (up from P1 billion last year), with the majority of that already going toward growing these brands and their exposure in foreign markets.
EMP said that it is “on the constant lookout to grow its global presence”, and that a secondary listing in Singapore would be a great way for the company to draw attention to itself as a global player, and also provide a means for international investors to take part in the EMP growth story.
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A secondary offering is sort of like a follow-on offering, except that the batch of shares is sold on a different exchange.
While it sounds like EMP is looking to raise funding outside of the Philippines to fund expansion in foreign markets, it isn’t clear yet how they’ll go about doing this using a listing on the Singapore Exchange (SGX), or even a timetable for when this might happen. EMP’s parent company, Andrew Tan’s Alliance Global [AGI 10.14 2.31%], could decide to sell its own shares to international investors (proceeds go to AGI), or cause EMP to issue new shares to international investors (proceeds go to EMP), or a blend of the two.
It’s all just speculation though, since this is at such an early stage and we barely have any actionable information to go on. I mean, the market still thought it sounded like a good idea; the “A. Tan Group” was the only MB Family Index member in positive territory on Friday, with EMP up over 4% on a day when almost everything in the market was bleeding red.
We will update as soon as information becomes available, which sounds like it will be sooner rather than later based on the tone of EMP’s statements.
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