Ayala shares sale raises $275M for power, infra


AYALA Corp. (AC) has raised $275 million (about P12.4 billion) from the sale of common shares to finance investments in infrastructure and power generation projects.

“Proceeds raised from this placement will allow Ayala to expand into business lines that will result in robust and sustainable earnings for the company. At the same time, this equity issuance further strengthens the balance sheet of the company,” said Delfin Gonzales Jr., AC chief financial officer.

In a disclosure to the Philippine Stock Exchange, the company said it raised $275 million from the sale of 18.78 million common shares, raising the company’s public float to more than 40 percent from 38.23 percent.

Ayala said the shares were sold at $14.66 (P660) each, a discount of 5.2 percent to the 30-day volume-weighted average closing price of its shares. The price was set by Ayala’s holding company Mermac Inc., which served as the seller and subscriber of the public float.

The share placement was 2.35 times oversubscribed, with strong demand from long-only funds and a mix of Asian, European and US investors, the company said, adding that orders from local institutional investors helped boost demand.

CLSA Ltd. was the sole global coordinator for the share placement. CLSA and Credit Suisse (Singapore) Ltd. acted as joint bookrunners and placement agents, while BPI Capital Corp. was the domestic bookrunner and placement agent.

The shares will soon be listed on the Philippine Stock Exchange.

Founded in 1834 and incorporated in 1968, AC is the holding company of the Ayala family’s businesses, which include water (Manila Water Company Inc.), telecommunications (Globe Telecom Inc.), property (Ayala Land Inc.), semiconductors (Integrated Micro-Electronics Inc.), banking (Bank of the Philippine Islands), and education (LiveIt Investments) among others. It is 50.56-percent owned by Mermac Inc., 10.52 percent by Mitsubishi Corp. and 38.92 percent by the investing public.


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