GT Capital completes P12B fund-raising
Ty family-led conglomerate GT Capital Holdings Inc. has completed a P12-billion fresh fund-raising from the sale of perpetual preferred shares, a maiden offering which was oversubscribed by nearly seven times the base offer.
The preferred shares will be listed on the Philippine Stock Exchange on Thursday (October 27, 2016).
Total orders for the issuance amounted to P55.1 billion versus the base offer of P8 billion, GT Capital disclosed to the Philippine Stock Exchange on Wednesday.
The issuance consisted of a base offer of eight million cumulative, non-voting, non-participating,
non-convertible, peso-denominated perpetual preferred shares sold at P1,000 each with an oversubscription option of up to four million shares.
“GT Capital’s initial perpetual preferred share issue received very warm reception from various investors, as indicated by its oversubscription and tight pricing. We extend our appreciation to all our stakeholders for their continued trust in and support for GT Capital,” GT Capital president Carmelo Maria Luza Bautista said.
“The overwhelming success of this offering, with an oversubscription of almost seven times, is a very strong indication of the market’s confidence in GT Capital and the depth and maturity of the domestic capital markets. Despite the volatility, which we expect to continue until year-end, investors banked on GT Capital’s solid financial profile and sustained earnings growth,” First Metro Investment Corp. president Rabboni Francis Arjonillo added.
Investors in these preferred shares will generate dividend rates of 4.6299 percent and 5.0949 percent per annum, for the Series A (GTPPA) and Series B (GTPPB) shares, respectively.
While these bonds are perpetual in nature, they carry a synthetic maturity on the 7th (for GTPPA) and 10th (for GTPPB) year of issuance. The rates will increase if they are not redeemed on optional redemption date.
With this issuance, GT Capital was able to raise fresh funds to refinance loans incurred from its expansion into the infrastructure space.
GT Capital is a major listed Philippine conglomerate with interests in market-leading businesses across banking, property development, power generation, automotive assembly, importation, wholesaling, dealership, and financing, and life and non-life insurance. It also entered into a strategic alliance with Hong Kong-based First Pacific Group, by acquiring a 15.6 percent stake in infrastructure holding firm Metro Pacific Investments Corp., making it the second largest shareholder while First Pacific retained a majority stake.
