My apologies for posting this late. I had to run some errands yesterday and the deadline slipped my mind.

SMC Philippine Stocks

So, what’s this all about? It’s San Miguel Corporation’s (SMC) secondary offering, more like an IPO (initial public offering) but happening for the second time around. Here’s the original text straight from the COL.

SECONDARY OFFERING FOR SAN MIGUEL CORPORATION


Please be informed that per PSE memorandum 2011-0172 issued on April 20, 2011, in connection with the secondary offering of the common shares of SAN MIGUEL CORPORATION (“SMC” or the “Company”):

The offer is composed of treasury shares of SMC and secondary shares of Top Frontier Holdings, Inc. Therefore the investors will have to pay costs and expenses related to the purchase of the shares through the Exchange (i.e., broker’s commission and value added tax thereon, SEC transaction fee, PSE trading fee, Securities Clearing Corporation of the Philippines fee, and the Stock Investment Protection Fund fee). As such the Purchase Price will be the Offer Price (Php110) plus costs and expenses, or computed as the Offer Price x 1.00301, rounded off to three decimal places. The resulting Purchase Price is P110.331 per offer share.

The Allocation per Trading Participant (based on 134 active trading participants) is 55,000 common shares for a total of P6,068,205.00 per Trading Participant.

THE OFFER


Purchase Price : P110.331 per share
Minimum : 100 shares, and thereafter, in multiples of 10 shares
Subscription Deadline : April 26, 2011 10:00 am
Payment Deadline : April 28, 2011 12:00 noon

Important:

For interested subscribers, please subscribe online starting Monday April 25, 2011 to Tuesday April 26, 2011 up to 10 AM, by clicking on the San Miguel banner located in our entry page after logging in. Deadline for subscription request is on April 26, 2011 10:00am. Deadline for payment is on April 28, 2011 12:00 noon.


NOTE: COL shall not process subscription requests for accounts that fail to provide adequate funding given the deadline of the payment on April 28, 2011.

Source: CitisecOnline.com

Yes, you read it write. The deadline for COL subscription is today, April 26, 2011 at 10am. Payment on April 28, 2011. I’m not sure if it is only COL who has that deadline. Coz on the PSE Memorandum, it doesn’t bear any deadline in it. Or maybe it depends on your broker.

Here’s the official PSE Memorandum on San Miguel Corporation (SME) Secondary Offering

You must be asking, Is It a Good Buy?  Here’s what Gus Cosio, who manages mutual funds in the Philippines, on his blog says bout the deal.

There had been questions on whether the SMC share placement was a BUY.  I would think so.  Just like the DGTL/TEL share deal, this is one of those transactions that spur enthusiasm especially because the share placement had been widely distributed  among portfolios globally.  Also, seeing that SMC had traded above 170 a few weeks before this share placement makes people comfortable that the price level can approach those previous highs in the coming months.

Source: GusCosio.com

Personally, I also think it’s a good buy. I first got hold of SMC last December 28, 2010 then trading at P155/share. Then after 3 or 4 trading days, I was able to sold at P187.50/share.  After that, I swore that I’d get SMC again when it goes back to the original price I got it.

And guess what? Last April 12, a day before they ask for PSE suspension, SMC was trading at P153/share. And now they are offering it only at P110.331 per share. You do the math. I’m sure no further explanation is needed.

Below is the Historical Prices and Chart of San Miguel Corporation (SMC).

San Miguel Corporation

San Miguel Corporation (SMC) Historical Prices

SMC Chart

San Miguel Corporation (SMC) Chart

SMC trading resumes on May 5, 2011.

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Garry Zaldy de Castro is an advocate, Financial Advisor, Certified Investment Solicitor (Mutual Fund Representative), blogger, IT practitioner, husband to Aileen and a dad to Jacob Benedict. He started Financial Planning Philippines in 2008 just to share his financial learnings to friends, relatives and anyone who wishes to be financially independent.
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Is it Good or Not? Please let me know what you think :D

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