SM Group reaches out to domestic investors
SM Investments Corp. reached out to more local investors as it underscored Philippine corporate growth.
SM, with subsidiaries SM Prime Holdings and BDO Unibank, recently concluded retail investor seminar in partnership with CitisecOnline.com in Cebu, Cagayan de Oro, Davao and Manila which drew thousands.
“Investor education is very important to SM and we do our part by going around the country to share the long-term growth plans of the group. Historically, foreign investors dominated our minority investor base who gained immensely from the strong share price performance of SM and its listed subsidiaries. We want to encourage more local investors to likewise gain from the business acumen of the Sy family,” said Cora Guidote, SM senior vice president for investor relations said.
Since listing in the stock market in 2005, SM’s share price grew at a compounded annual rate of 17.4 percent. As a result, market capitalization grew to P819.1 billion as of end-August from P127.2 billion in 2005, reflecting the support of investors, particularly those of foreign institutional funds over the last 11 years.
Thus, a P10,000 investment bought during the IPO would be worth P46,920.82 if sold as of December 2015, notwithstanding cash dividends declared during those years.
SM has earmarked between P70-P80 billion every year in an aggressive expansion bid in the Philippines, fueled by the local economy’s strong momentum.
Supporting this capital commitment, SM posted an 11 percent growth in consolidated net income to P15 billion in the first six months of the year.