Ty-led GT Capital eyes P21.6-B from IPO
MANILA, Philippines - The holding firm of businessman George Ty, GT Capital Holdings Inc., is eyeing to raise around P21.6 billion from its equity raising exercise, citing strong demand from international investors.
In a statement on Tuesday, April 3, GT Capital said it has set the final initial public offering (IPO) price at P455 per share, within its previous P415 to P470 price guidance.
Citing "overwhelming interest" in the share sale, GT Capital said it expects:
- P15 billion from primary offering of 33 million shares
- P6.6 billion from secondary sale of 8.217 million shares
- P2.8 billion from overallotment option
"Despite the strong demand, we decided not to price at the top of the range to leave investors with room for upside," said Alfred Ty, GT Capital vice chairman.
"Other than the overwhelming interest in GT Capital, this landmark transaction really highlights the new vote of confidence in the Philippine investment story among global investors," Ty added.
Carmelo Bautista, GT Capital president, said the offer was well received by global investors, including the most prestigious long-term institutional investors and sovereign wealth finds. The international tranche more than five times oversubscribed.
The domestic offering will kick off on April 10 with the listing of shares in the first board of the Philippine Stock Exchange targeted for April 20.
GT Capital is spending P5.68 billion of the net proceeds to hike its stake in Global Business Power Corp. (GBP) and to expand its power plant. Another P4.20 billion will be earmarked for projects of Federal Land Inc., while P2.7 billion would go to the acquisition of another 20 percent stake in the property unit. Debt servicing would eat up another P2.8 billion.
Besides GBP and Federal Land, GT Capital also has interests in Metropolitan Bank & Trust Co. and its thrift unit PSBank, Toyota Motor Philippines Corp. and Philippine AXA Life Insurance Corp. - Rappler.com