From Philippine Star:
TKC Steel offering receives backing of local investors

Locally listed steel manufacturer, TKC Steel Corp. is in demand with several local stockbrokerage firms and other investors requesting for more allocations from its recently concluded follow on offering (FOO) to be listed on Nov. 23.

First Metro Investment Corp. (FMIC), issue manager and lead underwriter for the TKC Steel follow-on offering, said that strong local demand is due to the high growth prospects of the Company's Philippine and China operations and recent developments in TKC Steel's expansion plans.

"The company's strong fundamentals and the actual materialization of TKC Steel's growth stories such as the purchase of the blast furnace and the mining joint venture are driving the interest of investors. In spite of volatility in the U.S. stock market, we have been receiving additional orders from both local and foreign investors which unfortunately we can no longer accommodate due to the scarcity of shares," FMIC executive vice president Jojo Marcelo added.

In addition, local brokerage houses such as AB Capital Securities and IGC Securities, Inc. have signaled a "Buy" rating for TKC's shares citing a reasonable valuation for a high growth potential along with a strong steel industry.

Anthony Yeung, AB Capital analyst, said that the developments planned for next year will provide a significant increase in plant production that would fuel the strong revenue and income growth.

"Growth in the steel billet and pipe industries and TKC's expansion plans are the main reasons pointing to a TKC having a breakout year in 2008" he said.

TKC Steel offered a total of 235 million shares raising some P2.27 billion in the exercise. Proceeds from the offering will be used to finance its blast furnace facility as well as its expansion plans for its two subsidiaries; Treasure Steelworks Corporation (TSC), which operates the largest billet-making plant in the country in terms of installed capacity; as well as Zhang Zhou Stronghold Steel Works Co. Ltd., a manufacturer of steel pipes in the southeastern Chinese province of Fujian and a distributor to China and other export markets.

TKC Steel is the only steel manufacturer listed in the Philippine Stock Exchange.