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MANILA, Philippines — The ABS-CBN Foundation Inc. (AFI) announced Thursday that it is set to turn over the management of the La Mesa Nature Reserve and La Mesa Ecopark to the Metropolitan Waterworks and Sewerage System (MWSS) on February 15.
MANILA, Philippines — From nine in the past few days, the number of dams in Luzon with decreasing water level has gone down to seven.
MANILA, Philippines — The water level of Angat Dam dropped to 211.68 meters amid the threat of the El Niño weather phenomenon, according to the state weather bureau.
On Tuesday, I wrote about Balai Ni Fruitas [BALAI 0.41, up 1.2%; 8% avgVol] and the BALAI board’s reallocation of IPO proceeds to commissary construction [MB link], away from store network expansion. In the write-up, I asked whether the “avoidance of debt and interest expense outweigh the potential topline growth of the company through building new locations”, and noted that it seemed as though BALAI had not made its case to shareholders that de-prioritization of store expansion was the right course of action. Interestingly, BALAI’s Investor Relations team reached out after that story was posted to offer additional background for the reallocation. According to BALAI, it was able to deliver a strong sales performance by using the “distribution network of its sister companies,” by “boosting delivery and 3rd party aggregator sales”, and by “tapping other distribution channels” like Gaisano and Metro Supermarkets branches in Cebu. BALAI said that this reduced the need for BALAI to expand the store network quickly. In addition, BALAI now believes that additional locations can be financed in smaller tranches “either through IPO proceeds and internal cash”, and that this has allowed the company to reallocate proceeds “towards increasing production capacity in Metro Manila and Cebu”. BALAI expects this to “translate to even faster revenue growth in the long-term.”
The SEC released a draft memorandum for comment last week [link] which looks to regulate how “cornerstone investors” may participate in IPOs going forward. According to the SEC, a cornerstone investor receives IPO offer shares “with a guaranteed allocation at the final offer price”. The SEC notes that cornerstone investors “stimulate investor demand in an IPO”, and can “lend credibility”, “boost confidence”, and “deliver a positive signal to the market.” That said, the SEC is looking to: (1) regulate the information that a potential cornerstone investor might receive about an IPO to make sure that they are not provided with “any material information beyond that [in the prospectus]”, (2) require disclosure of cornerstone investors in any IPO prospectus, (3) require cornerstone investors pay the same price as retail, and (4) submit cornerstone investor shares to a 30-day lock-up from the IPO.
Government-run pension funds like SSS and GSIS have significant PSE portfolios, and it is possible to track changes in these portfolios over time using the Top 100 Shareholder disclosures released quarterly by each company. Using that data, Ely Paclibar (Your REIT Buddy) computed the change in holdings for both funds across all eight of the PSE’s REIT stocks, and I used that data to come up with a few interesting observations:
Balai Ni Fruitas [BALAI 0.43, up 3.6%; 4% avgVol] [link] said that its board approved a reallocation of its IPO proceeds, from “Store network expansion and store improvement”, to “Commissary set up”. BALAI said that the reallocation “is to reduce the need for further loans” and to help BALAI “avoid interest expense” associated with the setup of its commissary. Part of the reallocated amount will also go toward building BALAI’s commissary in Cebu City, which it expects to complete “within the year”.
1. JG Summit [JGS 38.00, down 1.9%; 320% avgVol] [link] confirmed a report that it is interested in expanding its solar investments “outside of the conglomerate’s span” through its renewable energy subsidiary, Merbau Corp. Until now, Merbau has been focused on installing rooftop solar on businesses and properties within the Gokongwei group.