SEC approves Pepsi's P6.9-B IPO plan

The Securities and Exchange Commission on Thursday approved the bid of Pepsi-Cola Products Philippines Inc. to raise as much as P6.9 billion in additional capital by selling primary and secondary to the public. The company is the licensed bottler of PepsiCo beverages in the Philippines. Documents from the SEC showed that Pepsi, the country’s second most popular soda product, is offering 380,782,893 primary shares and 761,565,787 secondary shares, at a maximum price of P6.04 each, to the public. The net proceeds,estimated to amount to P2.275 billion, will be used to partially finance Pepsi’s capital expenditures for 2008 and 2009. The company said P910 million will finance the purchase of additional non-carbonated beverage production facilities at several plants; P455 million to expand carbonated beverage production at plants; P455 million to come up with new products and another P455 million to add PET products capacity to its plants. Pepsi Philippines produces cola and flavored carbonated beverages, including low-calorie derivatives, as well as juices, iced teas, sports drinks and energy drinks. It is known for popular beverage brands such as Pepsi, Diet Pepsi, Pepsi Light, Pepsi Max and 7Up, Mountain Dew, Gatorade, Lipton Iced Tea, Tropicana, Propel and Sting. For the fiscal year ending June 30, 2007 the company earned P1.001 billion in net income, up from previous year’s P868.745 million. - Cheryl Arcibal, GMANews.TV