Active Alliance, Inc. (AAI) is set to go public

Citation

(2001), "Active Alliance, Inc. (AAI) is set to go public", Circuit World, Vol. 27 No. 1. https://doi.org/10.1108/cw.2001.21727aab.020

Active Alliance, Inc. (AAI) is set to go public

Active Alliance, Inc. (AAI) is set to go public

Keywords AAI, Flotation

AAI said it will offer 50 million out of the total 80 million common shares set for listing at the Philippine Stock Exchange (PSE). The shares will be priced at a par value of P1. AAI will be listed on the second board or the bourse's classification of companies capitalized at least P100 million. AAI is capitalized at P120 million with a subscribed capital or paid up capital of P30 million.

Proceeds of the offer will be used to build a manufacturing plant to be located in the Subic Bay Freeport Zone worth P38 million. AAI's one hectare property will house equipment capable of producing two million PCB units. The company has recently signed a leasing agreement with the Subic Bay Metropolitan Authority (SBMA) for use of the property within a 15-year period.

AAI also plans to use part of the cash to pay off P10 million worth of leasing fees. Another P2 million will be allocated working capital requirements. Security Bank affiliate SB Capital and Investment Corp. is the sole issuer and underwriter of the AAI public debut.

Analysts are lukewarm over the planned listing saying the company must face up to competition such as demand for shares of semiconductors firm Ionics Circuits, Inc. Its Singapore unit Ionics EMS recently boasted of a $1-billion deal with Philips Electronics NV for the production of CD re-writable drives.

"Its prospects are favourable since it is linked with the Internet business and we project steady growth of exports at 10 percent for this year. But if I was an investor, I would want to invest in something that I already know about", an analyst at a local brokerage firm said.