Merkado Barkada
November 4, 2024 | 9:18am
PHINMA Corporation [PHN 20.50 ?4.3%; 8% avgVol] [link] set the price for its stock rights offering shares at P20.00/share, with an entitlement ratio of 1 SRO share for every 5.73 existing PHN shares owned.
MB BOTTOM-LINE: This diversified conglomerate plans to spread the P1 billion it will raise from this SRO across a lot of projects. All throughout its marketing, PHN has been using a ton of flowery language that appeals to our national sense of pride and positions PHN as a nation-builder primarily concerned with the wellbeing of the Filipino people. I don’t put a lot of stock in that kind of thing. What I care about is how the company is positioned for long-term growth, and while I like when companies raise money with a thick book of plans on how to grow that infusion into something more beautiful in the future, my main interest here is in PHN’s education unit. While this SRO won’t be used to fund the expansion of PHN’s education interests, it does have a huge injection already from KKR that it can use, and that injection implies a need to possibly spin the education unit off in an IPO in the next few years to give KKR an exit. If you’re loading up on PHN for its long-term potential, then this SRO is a decent opportunity (depending on the current market price) to add a little to your bags. Most buyers this year are probably underwater right now (stock has been as high as P30/share back in May), so the SRO would offer a chance to “peso cost average” your purchase price a little bi
Be the first to comment