PSE clears STI Holding’s P4.35-B equity offer
By Doris C. DumlaoPhilippine Daily Inquirer
MANILA, Philippines–The Philippine Stock Exchange has approved a follow-on equity offering worth up to P4.35 billion to be conducted by STI Education Systems Holdings Inc., formerly JTH Davies Holdings, within this month.
STI is offering up to 2.9 billion common shares for up to P1.50 per share but the final price will be set on Oct. 23 ahead of the October 29-31 offering period.
The stock trading debut on the stock exchange is targeted by Nov. 7, based on a PSE memorandum circular.
The Tanco-led company expects to sell as much as 80 percent or up to P3.28 billion of the offer shares to the overseas market. Its proposition is being a pure education play: it maintains and operates the Philippines largest private for-profit network of educational institutions.
Of STI’s total offer, up to 96.15 percent or 2.63 billion will consist of primary common shares while up to 3.85 percent or 105.2 million common shares will be secondary shares offered by a selling shareholder, Korea Merchant Banking Corp.
There will also be an overallotment option of up to 273 million common shares which STI has granted UBS AG, in its role as the stabilizing agent, the option to take up at the offer price to cover excess demand. This option can be exercised within 30 days from the listing date. If so, it can bring total issue to a maximum of three billion common shares.
For the domestic market, each PSE trading participant will be given an allotment of up to 4.108 million shares based on the list of 133 players as of end-September.
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