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MANILA, Philippines – LT Group Inc. of tycoon Lucio Tan raised on Wednesday, April 17, P37.72 billion (around $912 million) in a record share sale for the Philippines.
LT Group said in a statement it priced the offer at P20.50, the top of its indicative price range. This was a 21% premium to its 3-month volume weighted average price in the market.
Formerly known as Tanduay Holdings Inc., the company, where Tan’s assets have been consolidated into, sold 1.6 billion shares plus 240 million more in overallotment to global investors.
The offer, which was 7 times oversubscribed, was the biggest “re-IPO (initial public offering)” for the Philippines after Cebu Pacific Air’s $621-million IPO in 2010, said the company.
“This offering validates LT Group’s position as a leading conglomerate in the Philippines. We look forward to the next stage of its evolution as a listed company,” said Tan, chairman and CEO.
A roadshow was conducted in the Philippines, Singapore, Hong Kong, London, New York and Boston, and 11 cornerstone institutional investors gave commitments for one billion shares.
“We are extremely pleased with the strong level of interest that the LT Group received from the global investor community, and we welcome them as our shareholders. This is a testament to the positive long-term outlook on the Philippine economy as we remain fully committed to support the continuous growth of our country and LT Group,” added its President Michael Tan, son of the tycoon.
Tan is Philippines’ second-richest man with interests in tobacco and beer and liquor manufacturing, banking, real estate and air transportation. LT Group’s units include Fortune Tobacco Corp., Asia Brewery Inc., Philippine National Bank, Philippine Airlines and Eton Properties Philippines Inc.
Trading in the company’s stock was temporarily suspended by Philippine Stock Exchange prior to the pricing of the international share offer.
UBS acted as the sole bookrunner for the transaction. Credit Suisse, Deutsche Bank and JP Morgan served as lead managers.
LT Group’s share offer was one of the first debt launches since the Philippines got its first ever investment grade last month. – Rappler.com
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