Barkada Market
January 31, 2023 | 8:57 a.m
Upson International [UPSON 5.50 pre-IPO] https://news.google.com/__i/rss/rd/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDEvMzEvMjI0MTUyNi9xdWljay10YWtlLXVwc29ucy1pcG8tYW5kLTItbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDEvMzEvMjI0MTUyNi9xdWljay10YWtlLXVwc29ucy1pcG8tYW5kLTItbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 The IPO has been approved by the PSE. The offer period runs from March 6th to March 10th, with the IPO on March 16th. UPSON will officially price the offering on February 28th. UPSON is the parent company of computer and technology parts retailer Octagon.
MB Quick Take: I haven’t looked closely, but it doesn’t appear that UPSON has changed anything significant about their IPO in the time since they last prepared a prospectus for this IPO. They’re still trying to raise P5.4 billion through a mix of primary and secondary stocks. The biggest difference: The market is showing signs of life, and now that valuations are improving, asset owners are more willing to divest equity to fund growth plans.
Union Bank [UBP 97.0 3.7%] https://news.google.com/__i/rss/rd/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDEvMzEvMjI0MTUyNi9xdWljay10YWtlLXVwc29ucy1pcG8tYW5kLTItbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDEvMzEvMjI0MTUyNi9xdWljay10YWtlLXVwc29ucy1pcG8tYW5kLTItbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 Net income for FY22 grew 1.6% to P12.7 billion, driven by net interest income and fee-based income. UBP said it posted record earnings of 52.2 billion pesos (up 16%), with net interest income up 31%.
MB Quick Take: Looking back, UBP has been through a lot in 2022. Not in a negative way, but in a transformative way that BPI’s relatively small merger with Robinsons Bank just can’t touch. The integration of Citi PH’s assets will have a massive impact on UBP’s future financial metrics, to the point where it may be difficult to derive much benefit from comparisons of future performance to periods prior to the Citi PH integration.
Holcim [HLCM 4.2] https://news.google.com/__i/rss/rd/articles/CBMidWh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDEvMzEvMjI0MTUyNi9xdWljay10YWtlLXVwc29ucy1pcG8tYW5kLTItbW9yZS1tYXJrZXQtdXBkYXRlc9IBemh0dHBzOi8vd3d3LnBoaWxzdGFyLmNvbS9idXNpbmVzcy9zdG9jay1jb21tZW50YXJ5LzIwMjMvMDEvMzEvMjI0MTUyNi9xdWljay10YWtlLXVwc29ucy1pcG8tYW5kLTItbW9yZS1tYXJrZXQtdXBkYXRlcy9hbXAv?oc=5 touts its Geocycle program to convert one million tonnes (1 billion kg) of “qualified waste” into alternative fuels and cement components. HLCM refers to the initiative as “Circular Construction,” which aims to prioritize “reuse, share, lease, repair, refurbish, upcycle, or recycle” rather than the traditional “take-make-consume-dispose” model.
MB Quick Take: Cement manufacturing is one of the most polluting industries in the world. It is the third largest source of industrial pollution in the US, and global cement production is responsible for more air pollution than “all the trucks in the world.” But we need cement. Especially now that we are expanding the infrastructure to connect cities via roads and regions via boats and planes. Anything that reduces the harmful footprint of this necessary evil is good, although I keep asking myself: if 1 billion kg of waste was saved through this program, what total “addressable market” of waste is HLCM responsible for? Is that 1 billion kg a significant part of the total waste, around 25%, or is it a rather insignificant part? I would like some context to get a sense of the essentiality and potential promise of this geocycle program.
—
Merkado Barkada is a free daily newsletter about the PSE, investments and business in the Philippines. You can subscribe to the newsletter or follow on twitter for the full daily updates.
Comments are closed.