Firms return to capital market
The Securities and Exchange Commission en banc approved on Tuesday P124.2 billion worth of fund raising activities, signaling the return of listed companies to the capital markets.
SEC commission secretary Armando Pan Jr. said the regulator approved the P72-billion preferred shares offering of conglomerate San Miguel Corp., the P50-billion bond offering of property developer Ayala Land Inc. and the P1.2-billion initial public offering of community mall builder Philippine Primark Properties Inc.
Documents filed with SEC showed San Miguel would initially issue P30 billion worth of preferred shares this month, with the balance to be placed under shelf registration.
Ayala Land would initially issue P8 billion worth of bonds in April, with the remainder to be also placed under shelf registration.
San Miguel is raising P30 billion to refinance maturing US dollar-denominated obligations. It will offer 280 million shares with an oversubscription for 120 million shares at an offer price of P75 per share.
San Miguel hired eight banks to handle the transaction, including BDO Capital and & Investment Corp., China Bank Capital Corp., ING Bank, PNB Capital and Investments Corp., RCBC Capital Corp., SB Capital Investments Corp., Standard Chartered Bank and United Coconut Planters Bank.
The preferred shares will be listed in the Philippine Stock Exchange.
Ayala Land plans to raise P8 billion from the issuance of fixed-rate bonds to finance investments in Malaysia, acquisition of a 26-hectare property in Cebu and construction of various office, malls and residential projects.
The property firm appointed BPI Capital Corp. as the lead underwriter for the offering and BDO Capital, China Bank Capital, First Metro Investments Corp., PNB Capital and Investments Corp. as the joint underwriters.
The bonds will be listed in the Philippine Dealing & Exchange Corp.
Meanwhile, community mall developer Primark hopes to be the first company to conduct an IPO this year. The company plans to sell up to 704.46 million primary common shares at an offer price of P1.70 per share.
Proceeds from the share sale will be used to finance the rollout of more community malls across the country. It aims to open 25 to 30 malls every year until 2020. Its shares will be listed under the small, medium and emerging board of the PSE.
Primark hired Unicapital as the sole issue manager and underwriter for the offering.
PSE earlier said it expected companies to postpone their fund raising activities in the second half of the year due to market volatility.