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Philippines GT Capital, shareholder raise $350 mln in offering
January 10, 2013 / 4:21 AM / 5 years ago

Philippines GT Capital, shareholder raise $350 mln in offering

* GT Capital prices offering at 620 pesos, middle of indicative range

* Selldown raises more than expected on Grand Titan offering

* GT Capital shares down 3.5 pct in early afternoon

HONG KONG, Jan 10 (Reuters) - GT Capital Holdings Inc , the flagship of Philippine banking tycoon George Ty, and its controlling shareholder raised a larger-than-expected $350 million in a share offering, benefiting from investor demand to boost the company’s free float and raise funds to finance a recent stake purchase.

GT Capital sold 16.3 million new shares in a primary offering through a so-called top up placement, while shareholder Grand Titan Capital Holdings offloaded another 6.73 million shares, the company said in a securities filing on Thursday.

Grand Titan had originally offered 4.08 million shares, Thomson Reuters publication IFR reported on Wednesday, citing a term sheet of the deal.

The shares were sold at 620 pesos each, or a discount of 7.7 percent to Wednesday’s close, after being marketed in a range of 610-630 pesos.

GT Capital shares fell 3.5 percent to 648.5 pesos in early afternoon trade on Thursday, trading above the selldown price, compared with a 1 percent decline in the benchmark index. The stock has surged 42.5 percent since the company’s $500 million initial public offering in April of last year.

The 14.3 billion peso ($350.5 million) selldown was more than three times oversubscribed, GT Capital said in the filing. The deal will increase the company’s free float to about 40 percent from 30 percent.

GT Capital plans to use most of the proceeds from the primary issuance to fund the 9 billion peso purchase of a 30 percent stake in Toyota Motor Philippines, which was announced in October 2012.

UBS acted as sole bookrunner on the deal, GT Capital said. ($1 = 40.8000 Philippine pesos) (Reporting by Elzio Barreto and Erik dela Cruz in Manila; Editing by Chris Gallagher)

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