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San Miguel Brewery debuts on Philippine bourse

AFP - Monday, May 12

MANILA (AFP) - - San Miguel Corp's domestic brewing unit debuted on Monday on the Philippine Stock Exchange to a warm reception from investors looking for a long-term play, dealers said.

The unit, San Miguel Brewery Inc, was spun off from Southeast Asia's largest food and beverage group, for which it contributed some 40 percent of group operating profit.

President Gloria Arroyo rang the opening bell with San Miguel Corp chairman Eduardo Cojuangco.

"It's a long-term play for investors looking for a sound company. This is the one that's making money for San Miguel," said Gomer Tan, an analyst at Regina Capital Development Corp.

San Miguel Brewery shares opened at 8.30 pesos (19.54 US cents), up 3.8 percent from the initial public offering price of 8.00 pesos. It was trading at 8.10 pesos in late morning.

"We are looking beyond the present temporary market conditions and are focusing instead on our vast potential," Cojuangco said on the listing of the brewing unit at a time when the market was suffering from weak investor sentiment brought about by worries over the US economy and credit markets.

San Miguel Corp, which is 20 percent owned by Japanese brewer Kirin Holdings Co Ltd, is also planning to hold a separate IPO for its packaging business.

San Miguel has said it will use the IPO proceeds to fund its foray into new capital-intensive businesses such as energy and mining.

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