Ty group earmarks P24-B IPO proceeds for real estate, BPO, energy

MANILA, Philippines – The holding company of tycoon George S.K. Ty expects to raise as much as P24.65 billion from its initial public offering (IPO) to finance its business ventures outside its core banking, insurance, real estate, and car dealing businesses.

Ty-led GT Capital Holdings Inc. plans to use the proceeds for its expansion plans in existing and new ventures, including real estate, infrastructure, business process outsourcing, and renewable energy projects, according to documents from the Securities and Exchange Commission (SEC).

GT Capital said it will sell 41.217 million common shares at an offer price of P520 per share to raise as much as P21.43 billion.

It has allocated additional 6.183 million common shares for an overallotment option, bringing gross proceeds from the maiden share sale to P24.647 billion.

Bulk or as much as P6.16 billion of the net proceeds will be used for capital and project expenditure for the acceleration of key growth projects of real estate unit Federal Land Inc. GT Capital will also allot up to P4 billion to repay existing debts.

Another P3 billion was allotted for new businesses, including possible venture into infrastructure, business process outsourcing and renewable energy projects.

Up to P1 billion will be used to finance the acquisition of a 4.587% stake in Global Business Power Corp., one of the largest independent power producers in Visayas with a gross dependable capacity of 627 megawatts.

GT Capital is the primary vehicle for the holding and management of the various business interest of the Ty family. Besides interests in Federal Land and Global Business Power, it also owns Metropolitan Bank & Trust Company, Toyota Motor Philippines and Philippine AXA Life Insurance Corp. – Rappler.com