Ayala to raise P18B by Q4 2014

MANILA, PHILIPPINES – Ayala Corporation plans to raise funds amounting to P18 billion ($402.77-million*) by the last quarter of 2014.

The company hopes to complete the P3-billion ($67.13-milion) follow-on offering of its unit Integrated Microelectronics Incorporated (IMI), while the P15 billion ($335.54 million) preferred shares issuance of Ayala Corporation is slated in the last quarter of 2014, the conglomerate’s managing director John Eric Francia said.

Proceeds from IMI’s follow-on offering will finance its expansion plans while Ayala is issuing preferred shares to finance its power and infrastructure projects, as well as its traditional businesses like automotive and financial services.

IMI is finally pushing through with the much delayed follow-on offering. “Now, there is more clarity in the strategy of IMI and things have gotten much better. IMI is on investment mode again,” Francia said.

IMI, a worldwide providers of electronics manufacturing services, will offer up to 215 million of common shares plus an over allotment option for 85 million shares at an offer price of up to P10 ($0.22) per share.

The conglomerate is also raising P15 billion ($335.54 million) through the issuance of 30 million preferred shares at an offer price of up to P500 ($11.19) per share.

Ayala Corporation’s infrastructure projects include the Cavite-Laguna expressway (CALAX) which has yet to be awarded; LRT1 Cavite extension project; Automatic Fare Collection System (AFCS); and Daang Hari South Luzon Expressway. Its energy projects include the GNP Kauswagan in Mariveles; and the South Luzon Thermal Energy Corporation projects in Batangas and hydro projects.

The conglomerate is currently ramping up its investments in the power and infrastructure sectors with a view to building a portfolio that can be a source of predictable earnings and cash flow over the medium to long term.

The conglomerate is also currently looking at other infrastructure projects including the P123-billion Laguna Lakeshore Expressway Dike project.

BPI Capital Corporation is the issue manager and underwriter for both IMI and Ayala Corporation fund raising activities. – Rappler.com

 $1 = P44.68