Demand In The Retail Market For Philnare|
April 19, 2007
The National Reinsurance of the Philippines or “PhilNaRe”
initial public offering (IPO) set for April 27 has the local
retail market scrambling for additional shares, which are
actually oversubscribed many times over as of
"The PhilNaRe IPO attracted small investors and
increased retail demand which is inordinately high compared to
historic stock listings," said Warren Sy, president of SB
"Most brokerage houses and investment
entities were not given enough shares to meet the demand of
the market," he added.
The tremendous demand from the
retail market indicates continuous support for the PhilNaRe
stock even after listing day.
The offering has been
highly successful, as it has been several times
oversubscribed," says BDO Capital and Investment Corp.
President Ed Francisco.
BDO Capital and Investment
Corp. is the lead underwriter for the IPO.
the years, PhilNaRe has grown in status as the national
reinsurer and the sole reinsurance company of the Philippines.
With the help of Presidential Decree 1270, it has the mandate
to retain 10 percent of the local insurance industry’s
Due to a well-planned Capital Enhancement
Program that included fresh capital infusion, a merger and now
an IPO, PhilNaRe has always had a fundamentally sound business
and growth strategy. Its net income has increased from P211M
in 2004 to P316M in 2006, with its total assets increasing
from P5.3B in 2004 to P9.1B in 2006. As a policy, the company
allots 100 percent of the previous year's income as cash
dividend or stock dividend.
For future prospects,
PhilNaRe expects to generate P627M this year, nearly double
its net income for 2006. This will be mainly due to its
ability to retain more premiums and from the move of the local
insurance industry, specifically life insurance, to reeducate
the market about the investment opportunities present with
their products today.