In the coming weeks, two new companies will be offering their shares to the public for the first time, namely, the SSI Group Inc. (SSI) and the Phoenix Semiconductor Philippines Corp. (PSPC).
Is it a good idea to buy and subscribe to the IPO of SSI and PSPC?
Details of the SSI IPO
SSI will raise up to P6.48 billion by issuing 695 million primary shares and 168 million secondary shares. With an over-allotment option of 129 million shares, SSI can possibly raise a total of P10.8 billion from the IPO.
The SSI Group is a leading specialty retailer in the Philippines with 655 stores in 68 malls across the country. Its portfolio consists of 103 foreign brands operating under various formats that target the mid-to-upper segments of the market.
It markets the following foreign brands in the Philippines: Hermes, Prada, Gucci, Burberry, Salvatore Ferragamo, Lacoste, Michael Kors, Kate Spade, Gap, Old Navy, Zara, Stradivarius, Bershka, Aeropostale, Samsonite, Nine West, Payless Shoe Source, Beauty Bar, Marks and Spencer, Pottery Barn and TWG, among others.
Offer Period: October 24-30, 2014
Listing Date: November 7, 2014
Offer Price per Share: P7.50
Details of the PSPC IPO
Phoenix Semiconductor Philippines Corp. (PSPC) plans to raise as much P1.22 billion from the IPO. PSPC will issue 162.38 million primary and secondary shares each, with an oversubscription offer of up to 134.63 common shares at an offer price of P3.76 per share.
PSPC is engaged in the construction, ownership and operation of a plant for the manufacture, assembly, test and warehousing of semiconductor and memory devices and application and related products. The company operates out of Clark Freeport Zone in Pampanga and is therefore entitled to a number of incentives such as income tax holidays and waived import duties. PSPC primarily supplies to Samsung and its clients such as Apple and Hewlett-Packard to name a few.
Offer Period: November 10-21, 2014
Listing Date: December 1, 2014
Offer Price per Share: P3.15
Should you Buy the SSI and PSPC IPO?
Instead of relying on your gut feel or on anonymous bloggers or strangers on Facebook, get help from PinoyInvestor, a premium stock resource in the Philippines that compiles stock market research and analysis by several stock brokerage firms in the country.
This week, PinoyInvestor published six (6) Special Reports on the SSI IPO and three (3) Special Reports on the PSPC IPO.
Excerpts from the well-researched IPO analyses are:
- SSI IPO analysis by AB Capital Securities: “We valued SSI … and arrived at a Target Price of PHP xxx.72 per share.”
- SSI IPO analysis by RCBC Securities: “Despite our approach to compare SSI with RRHI, it needs mentioning that the companies cater to different retail markets – most of SSI’s stores are patronized by the higher-end market while RRHI’s stores are more affordable. This difference in positioning would explain SSI’s…”
- PSPC IPO analysis by Unicapital Securities: “At an indicative price of PHP 3.76, PSPC will trade at … Taking into consideration the scale of PSPC, we arrived at a fair value of PHP xxx.36 per share. Our recommendation is to…”
Access the premium Special Reports on SSI and PSPC IPO here! Below is a sample of the exclusive and confidential information you’ll get from the various Special Reports!
