Alterra plans follow on offering, to borrow P437.1M from banks


LISTED firm Alterra Capital Partners Inc. is planning to raise funds both from bank loans and from a follow-on offering to finance its expansion plans.

In a disclosure to the Philippine Stock Exchange (PSE) on Monday, Alterra said its board of directors approved the company’s plan to conduct a follow-on share sale of 500 million primary common shares “at a price to be mutually determined” by Alterra and the appointed underwriter.

The board of directors mandated Philippine Commercial Capital Inc. as lead underwriter of the upcoming share sale.

A follow-on offering is an issuance of stock subsequent to the company’s initial public offering.

Alterra said it is set to file a registration statement for the offer shares with the Securities and Exchange Commission (SEC) and for the listing of the said shares with the PSE.

The Alterra board also authorized the company to enter into loan agreements with various banks to borrow a total of P437.1 million at an interest at the rate of 5 percent per year with a term premium at the flat rate of 10 percent and a maturity date of August 15 this year.

In December last year, Philab Industries Inc. cemented its entry into the PSE via backdoor listing through listed firm Alterra. Alterra announced on December 22 that it executed the buyout of 351,740 shares or 93.48 percent of Philab for an aggregate price of P860 million.

Alterra said its fundraising initiative is intended to finance the group’s plans for the company, mobilizing new
businesses through Philab, and further expanding Philab’s business operations to boost its revenues and share price.

Philab group earlier mentioned through several disclosures that it aims to use the listed firm Alterra as a vehicle to construct a genomics BPO hub for Genomics Inc., also a subsidiary of Philab.

Prior to the entrance of the Philab group, Alterra was formerly iRipple Inc. and has undergone changes in ownership and purpose since 2014 when the company sold all its assets to Movemento Inc., turning the company into a holding firm. In March 2015, 89.49 percent of the firm was bought by businessmen Conrado Rafael C. Alcantara and Alfonso G. Anggala, with the intent to conduct a backdoor listing.

Alcantara and Anggala sold their 67 percent stake in Alterra to the Philab group in August 2016.

The company was behind Barter Merchandise Management Solution, a locally-developed software solution designed for merchandising operations of businesses, which employs point-of-sale (POS) transaction data with back-office business functions. It was also an authorized reseller of IBM and HP servers and POS equipment, Epson printers, and Symbol-Motorola scanners.


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