SEC OKs I-Remit IPO application

The Securities and Exchange Commission has approved the bid of I-Remit Inc., the country’s largest Filipino-owned, non-bank remittance company, to sell shares to the public. Gerard Lukban, SEC commission secretary, confirmed late Thursday that the SEC en banc approved iRemit’s application to list in the Philippine Stock Exchange. The company earlier announced that it is expecting to raise as much as P811.28 million in the maiden offering. iRemit earlier said the share price in its initial public offering will be between P4 and P5.77. it is offering a maximum of 140,604,000 common shares to the public. It is targeting to list in the PSE on October 15. "The net proceeds from the primary offer, estimated to be up to P575.6 million, will be used to finance expansion in other countries, to augment working capital requirements, and to retire some of the company's short-term debts," said Bansan Choa, iRemit chairman and chief executive officer. In its application, iRemit said up to 107,417,000 new common shares will be offered by way of a primary offer and at most 33,187,000 existing shares will be offered through a secondary offer. iRemit posted a consolidated net income of P43.5 million in the first half of 2007, surpassing its full year consolidated net income of P42.5 million in 2006. The remittance company appointed First Metro Investment Corp as its advisor/issue manager and underwriter for the IPO. The offer shares will represent 25 percent of the total issued and outstanding capital stock of the company after the IPO. The company is owned by a group of investors comprised of Star Equities Inc., JTKC Equities, Inc., Surewell Equities, Inc., and JPSA Global Services Company. Star Equities and JTKC Equities have investments in various firms involved in a range of industries from banking, real estate, manufacturing and hotel and resort operations. Among these are publicly-listed TKC Steel Corp., Sterling Bank of Asia, Discovery Chain of small luxury hotels, the Mansions Group of serviced apartments, and Kent Vinyl Tiles. Surewell Equities is engaged in the development of low- to medium-cost housing in Calabarzon and Bulacan which also caters to overseas Filipino workers, as well as being a shareholder in Sterling Bank of Asia. - Cheryl Arcibal, GMANews.TV