It’s not about their latest promo of cheap air fares.
It was all about Cebu Pacific’s Initial Public Offering (IPO)
Cebu Pacific’s IPO
Cebu Pacific is planning to offer 125.25 Million stocks worth 12 Billion pesos. It means that the price per stock is around 95 pesos. Although they will be listed on the local stock market, the company targets institutional and international investors for their initial offering.
The company originally planned the IPO in 2008 but postponed it due to the global economic crisis that occurred on the 4th quarter of that year. They said that the funds will be used to further their expansion in the ever growing market of air travel. The company has not yet revealed the exact date of their initial offering.
Cebu Pacific has been gaining strength in the previous years, beating their rival Philippine Airlines (PAL) in the domestic market. It also trimmed the market share of shipping industries by offering very low airplane tickets. Due to its increasing dominance, Cebu Pacific reported 1.78 Billion pesos of net income in 2009.
What is an IPO?
IPO or Initial Public Offering refers to the time when a company (whether large or small) issues common stock or shares to the public for the first time. It means that the public may now buy and trade stocks in the stock market. In the Philippines, PSE or the Philippine Stock Exchange is the most popular stock exchange entity.