STI equity offer priced at P0.90By Doris C. Dumlao
Philippine Daily Inquirer
MANILA, Philippines—STI Education Systems Holdings Inc., the country’s largest private for-profit education network, has priced its follow-on offering at P0.90 per share versus the earlier set maximum price of P1.50, an underwriter said.
UBS Philippines managing director Lauro Baja said the P0.90-per share pricing was finalized Monday night.
As STI is offering up to 2.9 billion common shares, this suggests that the equity offer will be worth about P2.61 billion.
The offering period is set for October 29-31 and the listing on the Philippine Stock Exchange on Nov. 7.
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.
The Tanco-led company expects to sell as much as 80 percent of the offer shares to the overseas market.
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.
The transaction will give STI, formerly JTH Davies Holdings, a public ownership of about 27.3 percent.
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