Offering of Tan firm to raise at least P28.8B

Tycoon Lucio Tan-led conglomerate LTG is making a grand stock market debut with a follow-on public offering worth much as $800 million, possibly making history for launching the biggest among initial public offerings or follow-on transactions seen in the local capital market so far.

LTG is selling as much as 1.6 billion common shares at an indicative range of between P18 and P20.50 each, excluding the overallotment option. This “re-IPO” suggests a prospective deal size of between P28.8 billion and P32.8 billion, which could be the largest maiden offering in the stock market, excluding stock rights and preferred shares offerings.

The two largest IPOs completed in the country so far were those conducted by tycoon Henry Sy-led SM Investments Corp. and budget carrier Cebu Air Inc. SMIC raised P28.8 billion in 2005 and Cebu Air, P23.33 billion in 2010.

Lauro Baja, managing director at UBS Philippines, the sole bookrunner for the transaction, confirmed that the term sheet was issued Monday containing an offer of up to 1.6 billion common shares excluding the overallotment or “green shoe” option.

Baja declined to give additional details but other sources who have seen the term sheet circulated Monday confirmed the price range of between P18 and P20.50 a share, which suggested that the deal would command a premium or at least be in line with current market prices.