GTCap sells P14.3B in shares

MANILA, Philippines—Taipan George Ty-led GT Capital Holdings Inc. sold P14.3 billion worth of shares to offshore institutional investors via private placement, making history for completing the largest ever overnight equity deal in the country.

This placement deal widened GTCap’s public float to 40 percent from 30 percent.

It raised fresh funds for investment in automotive unit Toyota Motor Philippines and other capital expenditures.

Taking advantage of a buoyant stock market valuation, GTCap sold 23.027 million shares to institutional investors at P620 per share, a 5-percent discount to the 20-day volume-weighted average in the market. Its share price has performed well since debuting on the Philippine Stock Exchange in April last year at P455 per share.

Lauro Baja, managing director of sole bookrunner UBS Philippines, said in an interview that demand for the offering hit an “unprecedented” level of $1.1 billion. Due to the strong demand, the issue was increased by $50 million from the original size of $300 million.

About 100 global investors were in the order book. About 75 percent of the investors came from Asia, 15 percent from the United States and the rest from Europe. “The quality of the book is really world-class,” Baja said.

“They hit it at the right time,” Baja said, noting that GTCapital benefited from the Philippine macroeconomic backdrop which, he said, was still “in a sweet spot.”

Also, he said the good reputation of the management team and the investors’ familiarity with the name had contributed to the successful deal.

In a disclosure, GTCap said the 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.

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

“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.

GTCap earlier announced an agreement to acquire an additional 30-percent stake in Toyota Motors Corp. from its banking unit, Metropolitan Bank and Trust Co., for P9 billion. This will be funded with the proceeds of the private placement.