Philippine carrier IPO raises over 500 mln USD, boosts capital market (2)

20:01, October 26, 2010      

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"Cebu Air's rapid expansion has spurred the growth of business and tourism to and within the Philippines. As a pioneer in the low cost carrier sector, it has created competition in the aviation market," Sicat said.

He added this is the best time for Cebu Air to hold the IPO given the recent bull run in Philippine stocks.

The PSE index has gained 39 percent since the start of the year and is among Asia's best performers. It has hit record highs under the President Aquino's administration, as its anti-corruption stance restored investor confidence.

Shares of Cebu Air rose by 6.4 percent to 133 pesos (3.07 U.S. dollars) per share Tuesday. It was the day's most actively traded stock at the PSE.

"As expected, the shares sizzled as the IPO was well received," said Astro del Castillo, managing director at local fund management firm First Grade Holdings.

A senior government official welcomes the successful IPO as this will boost the capital markets and lift the tourism sector.

"We believe that the Cebu Air IPO will further boost capital markets that are already bullish as a result of investor confidence in President Aquino's government," Executive Secretary Paquito Ochoa Jr. said.

He added that the country's tourism industry would also benefit from the company's expansion plans.

"This will also give our tourism sector a shot in the arm as the capital Cebu Pacific will raise from the IPO will allow them to expand its fleet and service more passengers and routes," he said.

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