1st IPO of 2012: What you need to know about GT Capital

MANILA, Philippines – GT Capital Holdings Inc., the holding unit of the Ty group of Metrobank fame, will be the first capital raising via initial public offering (IPO) this 2012. 

It disclosed on March 21 that it is lowering its initial indicative price from P520 per share to P415 to P470 per share for its big IPO in April.

“We don’t want to price ourselves on the high end with the attitude take the money and run. With starters therefore, we like to leave some room for our investors for some appreciation post listing,” explained the holding firm’s president Carmelo Maria Luza Bautista.

Even with the lower share price, GT will raise up to P22.3 billion, making it one of the biggest IPOs in the country in nearly a year.

Of the shares offered, 70% or 33 million, will be primary shares, while 30%, or 8.22 million, will be secondary shares.  

The domestic market will be offered 30% to 40% of the shares and 60-70% will be placed with international investors. Other companies owned by George S.K. Ty have partnerships with global leaders, including Toyota in the automotive sector, AXA in insurance and Orix Corp. in real estate. 

The international coordinator, bookrunner and lead manager will be UBS. Meanwhile, First Metro Investment Corp. will be responsible for the domestic offer.

“The bulk of the proceeds are going to power and property,” said Bautista. 

Up to P4.2 billion will be spend on accelerating growth projects in real estate (including Grand Hyatt/Metrobank Plaza, Metropolitan Park, and Marco Polo Residences). Up to 2.7 billion will be put towards acquiring an additional 20% share in Federal Land. In terms of power, up to P0.9 billion will be spent to acquire a 4.6% of Global Business Power Corporation (GBP) and up to P4.01 billion will be used to expand GBP’s power plants and increase direct ownership.

Bautista explained that the Ty’s non-banking assets, those outside the highly successful Metrobank, would be “consolidated into this vehicle”. The Ty family holds interests in real estate, life insurance, power and automotives. Though George Ty’s partnership with Toyota, they are responsible for selling nearly a third, about 33%, of all the cars in the Philippines.

“GT capital is like a mutual fund… representing the full spectrum of the Philippine economy,” said Bautista. 

The offering timetable is:

• 14 March – PSE board approval
• 15 March – SEC pre-effective clearance
• 21 March – Start of bookbuilding and domestic roadshow
• 22 March – International roadshow
• 3 April – Pricing
• 4 April – SEC permit to sell
• 10-16 April – Domestic offer period
• 20 April – Listing and trading 

GT expressed interest in getting into infrastructure, signalling they could bid on public-private partnerships offered by the Aquino government. “Perhaps we have to build the roads and bridges along with the cars,” said Bautista. – Rappler.com