Housing developer 8990 Holdings Inc. is planning a follow-on offering worth as much as P26.59 billion, consisting mostly of shares held by existing stockholders.
In a statement, 8990 President and CEO Anthony Vincent Sotto said “the company views the follow-on offering as a re-IPO to re-introduce 8990 and share its story to international and local investors, increasing the public float and trading liquidity of the stock in the process.”
He noted that, “The offering includes a top-up component which is expected to generate fresh capital to contribute to the company’s growth.” In a disclosure to the Philippine Stock Exchange, the firm said it has filed with the Securities and Exchange Commission a Registration Statement to offer up to 1.4 billion of its common shares.
The shares will be offered to the public for a maximum price of up to P18.99 per share. The Offer will also be subject to a top-up placement of up to 450 million Common Shares by iHoldings Inc.
According to the disclosure, 8990 will offer and sell up to 1.25 billion outstanding common shares held by existing shareholders TPG Rafter Holdings, Ltd., Pasir Salak Investments Limited, and iHoldings, Inc., with an overallotment option of up to 150 million outstanding common shares.
The company also plans to issue new common shares out of its unissued capital stock in favor of iHoldings, Inc., in the same number and at the same price of the Offer Shares to be sold by iHoldings, Inc. in the follow-on offering (up to 450 million new common shares, assuming overallotment option is fully exercised), and to list such common shares on the PSE as soon as practicable thereafter.
This means 8990 will be raising up to P8.55 billion from the top-up placement while the rest of the proceeds from the follow-on offering will go to the selling shareholders.
In the offering prospectus, 8990 said it will be using its share of the proceeds to repay loan obligations amounting to P8.6 billion.
The amount is owed to Asia United Bank (P1 billion), BDO Unibank (P1 billion), Bank of Commerce (P984.06 million), China Banking Corporation (P2.17 billion), Development Bank of the Philippines (P1.07 billion), Philippine National Bank (P1.89 billion), and Robinsons Bank Corporation (P500 million).
8990 has tapped BofA Securities and J.P. Morgan to be the joint global coordinators and bookrunners of the offering while China Bank Capital Corporation and PNB Capital and Investment Corporation will be the joint domestic lead underwriters and joint bookrunners.
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The article was originally published in Manila Bulletin and written by James A. Loyola.
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