PHINMA returns to the market after 3-decade absence with successful P1-B stock offering

Ramon Del RosarioJr. 

PHINMA chair, CEO 

The Del Rosario family-led PHINMA Corp. completed its first public share sale in nearly three decades, raising P1 billion through a successful stock rights offering on the Philippine Stock Exchange.

Marking its 68th anniversary, the holding company plans to use the fresh capital to expand its real estate, construction, and power businesses.

Management’s view

“PHINMA shall continue to serve Filipino families and communities by providing the essentials to a dignified life through the unified efforts of our businesses and investments in industries enabling us to make an even bigger impact on our society and country,” Ramon Del Rosario Jr., the chair and CEO of PHINMA, said during the listing ceremony on Wednesday.

“We look forward to your continued support as we pursue our lofty business goals and longstanding commitment to making lives better,” he added.

First public sale in almost 30 years

PHINMA sold 50 million shares to existing and qualified investors at P20 each last Nov. 13-19.

This was a roughly 3.5-percent discount based on its recent trading average.

Alfred Benjamin R. Garcia, research head at AP Securities, said this was the company’s first public share offer since 1995, citing data from Bloomberg.

Alfred Benjamin R. Garcia 

AP Securities, head of research 

Analysts’ view

“It’s honestly a bit of a surprise that most of the offer was taken up in the first and second round by qualified and existing shareholders. At the start of the offer, PHN’s market price was lower than the offer price so it’s good that shareholders still subscribed despite the premium,” Garcia said.

“I believe it’s a testament to how PHN shareholders believe in the company and its vision that they would be willing to add to their positions even at a higher price,” he added.

Garcia said around 16 percent of the sale was taken up by institutional investors, signaling robust demand from funds or potential strategic partners.

Use of proceeds

PHINMA Group will allocate P250 million to PHINMA Hospitality’s TRYP by Wyndham hotel in Bacolod City, P210 million for Union Insulated Panel Corp.’s Pampanga facility, and P200 million for PHINMA Properties’ projects in Bacolod, Cebu, and Davao. Some P170 million will fund PHINMA Solar Energy’s 58 green energy projects, while P114 million will go to Philcement Corp.’s Davao del Norte plant.

Another P239.56 million is set aside for socialized housing, food security, healthcare, green industries, and corporate purposes.