Cebu Air: Not for distribution in or into the United Estates
15-Oct-2010 ATR KimEng Capital Partners, Inc., the Domestic Lead Underwriter of the Cebu Air, Inc.’s initial public offering (IPO), announced today that the domestic portion of the IPO, amounting to P7 billion, has been oversubscribed by local brokers and investors prior to the end of the domestic offering period.
ATR KimEng's announcement follows a notice from the Philippine Stock Exchange that the PSE Trading Participants (TPs) have committed to take up 96% of their allocation amounting to 37,327,500 Cebu Air common shares with an offer value of P4.67 billion. With additional orders from brokers and other investors, the balance of the PSE's TP allocation has now been fully sold.
In relation to the portion allocated to local small investors (LSIs), ATR Kim Eng also announced that the syndicate of domestic underwriters it organized has an adequate number of investors that are ready to purchase any shares that will remain unsold from the original amount allocated to them. Philippine regulations require that at least 10% of any initial public offer should be allocated to LSIs. The offer to LSIs remains open until 11:00 a.m. Monday, October 18, 2010. LSI applicants are allowed to subscribe up to P25,000 worth of Cebu Air, Inc. shares, and can submit their applications to ATR KimEng or BDO Stock Transfer Department.
Last week, the international tranche of the IPO amounting to P16.4 billion was fully subscribed by foreign fund managers. The joint global coordinators, bookrunners and international lead managers, Citigroup Global Markets Limited, Deutsche Bank A.G. and J.P. Morgan Securities Ltd., reported strong investor demand that resulted in the international tranche being multiple times oversubscribed by institutional investors internationally. Cebu Air priced its IPO at P 125 per share, which was at the top half of the pricing range of P110 to P135 per share.
Cebu Air and its selling shareholder, CPAir Holdings, Inc. are offering common shares to international and domestic investors for the initial public offering. This is the largest Asia-Pacific LCC IPO to date at P125 per share and an IPO size of P23.3 billion (US$539 million) prior to exercise of the overallotment option. The IPO is one of the largest ever conducted in the Philippines and the largest Philippine IPO in US dollar terms Cebu Air is the first company in nearly two years to attempt to raise money in an IPO in the Philippines.
This press release is not an offer of securities for sale in the United States. The securities of Cebu Air, Inc. have not been and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act. There will be no public offering in the United States.