San Miguel Corp. is looking to reduce its debt from funds raised by the planned IPO of its domestic beer unit.

The Philippines-based food and drink conglomerate is readying the IPO for San Miguel Brewery, despite having to cut the amount it hopes to raise by 29% last week. The offering, scheduled for the end of this month, is estimated to bring in up to US$409m, down from a projected $576m forecast made last month.

Local reports over the weekend said that the company is looking to reduce as much of its foreign debt as possible with the IPO funds. As of the end of September last year, The Wall Street Journal Asia said, the company had PHP57.8bn in long-term debt.

San Miguel is looking to sell 11% of the brewing unit, thereby reducing its holding in San Miguel Breweries  to 89% post-offering.

Late last week, San Miguel Brewery posted a 37% leap in net profits in the first quarter of this year to PHP2.5bn (US$60.4m). In volume terms, sales in the three months to the end of March increased by 18% to 47m cases, and by 13% in value terms to PHP12.3bn. Operating income was up by over a third to PHP3.7bn.