MANILA, Philippines – SM Investments Corp. has raised $150 million from the sale of new shares through a private placement, braving the capital market ahead of the “ghost” month.
SMIC—led by the family of the country’s wealthiest man, taipan Henry Sy—sold 7.25 million shares to institutional investors at P900 per share, said SMIC senior vice president for investor relations Cora Guidote.
The deal was arranged by Swiss investment bank UBS, which completed the book-building in only four hours on Thursday, said UBS Philippines managing director Lauro Baja.
In a disclosure to the Philippine Stock Exchange, SMIC said the deal was increased from the base offer of $100 million due to strong demand.
“The proceeds of the placement will be used to refinance some of the company’s existing obligations and for general corporate purposes,” Guidote said in the disclosure.
“The placement will also enhance further the free float and liquidity of SM shares,” Guidote added.
The deal was priced at the lower end of the P900 to P920 per share indicative range and at a discount to SMIC’s closing price of P961.50 per share on Monday.
This transaction was structured as a “top-up” placement, which means principal shareholders lent some of their shares for a quick fundraising but they will later buy back the shares at the same price they were sold.
SMIC recently obtained the approval of the Securities and Exchange Commission for the increase in the company’s capital stock to cover stock dividends and prepare for future expansion. It jacked up its authorized capital from P7 billion to P12 billion.
At present, SMIC has 630.5 million outstanding shares equivalent to a capital of P6.3 billion based on a the par value of P10 per share.
Last month, the SM group has finalized a plan to consolidate all property units into a single publicly listed entity under SM Prime Holdings Inc.