Sultan Mining's IPO indefinitely postponed
26-JUL-2008 Intellasia | Dow Jones
Jul 26, 2008 - 7:00:00 AM
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Philippine coal producer Sultan Mining and Energy Development Corp has indefinitely shelved its public offering to await better market conditions, the underwriter of the offering told the stock exchange Thursday.
Asian Alliance Investment Corp., which has been mandated to handle Sultan Mining's IPO, said the present volatility in the stock market could undermine the value of the stock despite the company's past performance and prospects.
Despite recent gains, the Philippine Stock Exchange remains one of the worst performers in Asia this year. The benchmark PSE Index has fallen 31% from its closing level of 3621.60 at the end of 2007.
"For this reason, we have decided that the Sultan IPO would be more appropriately undertaken when market conditions improve," the investment banking firm said.
Sultan Mining was originally scheduled to start its PHP480 million (US$10.8 million) offering in late June. As the date approached, the coal miner deferred it to later this month.
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