GTCap raises P14.3B from quick equity deal

By Doris C. Dumlao

Philippine Daily Inquirer

4:56 pm | Thursday, January 10th, 2013

MANILA, Philippines—Taipan George Ty-led GT Capital Holdings Inc. has sold P14.3 billion worth of shares to offshore institutional investors in an overnight private placement, the largest ever quick equity deal of its kind executed in the Philippines.

This deal widens GTCap’s public ownership and raises fresh funds to invest in its automotive unit Toyota Motor Philippines.

Taking advantage of buoyant stock market valuation, GTCap sold 23.027 million shares to institutional investors at P620 per share, a discount to the closing price of P672 per share on Monday. The conglomerate’s share price has performed well since debuting on the Philippine Stock Exchange in April last year at P455 per share.

In a disclosure to the Philippine Stock Exchange, GTCap said this deal raised about P10.1 billion in primary proceeds for the company while controlling shareholder Grand Titan Capital Holdings Inc. will generate secondary proceeds worth P4.2 billion.

UBS acted as sole book runner for the placement.

The primary component of the equity deal was via a top-up structure, whereby Grand Titan lent its shares to allow a quicker fund-raising but it is concurrently subscribing to 16.3 million new shares to be issued by GTCap at the same price as the placement.

The placement increased the public free float of GTCap to 40 percent from 30 percent. About 100 global investors were listed in the order book, which was more than three times oversubscribed.

“We are extremely pleased with the continuous support and confidence that the global investor community has given to GT Capital since our IPO,” said GTCap chairman Arthur Ty.

“We are optimistic about the growth prospects for GTCap given the strong macro-fundamentals of the Philippines,” said GTCap president Carmelo Maria Luza Bautista.

Last October, GTCap announced an agreement to acquire an additional 30 percent stake in Toyota Motors from its banking unit Metropolitan Bank and Trust Co. for P9 billion. Majority of the primary proceeds will go toward funding this acquisition while the balance of the primary proceeds will be used for general corporate purposes, the company said, adding this was in line with the strategy that the company set out at the time of its IPO in April 2012.

Follow Us

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Short URL: http://business.inquirer.net/?p=102049

Tags: Business , GT Capital Holdings , Investment , Philippines

Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:

seo tools