LISTED conglomerate GT Capital Holdings Inc. announced on Friday the final dividend rates for its P12-billion follow-on offering, which is meant to raise funds for debt repayment and acquisition deals.
In a disclosure to the Philippine Stock Exchange (PSE), GT Capital said the Series A offer shares will carry a 4.6299-percent annual dividend rate while the Series B shares will carry a 5.0949-percent per annum rate.
GT Capital is selling up to 12 million perpetual preferred shares priced at P1,000 each in a follow-on offering. A follow-on offer is the issuance of shares to investors by a public company that is already listed on an exchange.
The preferred shares are classified as cumulative, non-voting, non-participating, and non-convertible.
The George Ty-led conglomerate will initially offer 8 million shares with an oversubscription option of another 4 million shares.
The offer period will run from October 17 to 21, with listing on the PSE scheduled on October 27.
The base offer is expected to generate net proceeds of P7.94 billion after listing-related fees and taxes, but if the offer is oversubscribed, the net proceeds will reach P11.92 billion.
A total of P7.5 billion in debt obligations will be paid off from the proceeds of the follow-on offer. In case of oversubscription, the firm will have more than P4 billion left for strategic acquisitions.
GT Capital chief financial officer Francisco Suarez earlier told reporters the company is looking for acquisition opportunities in the financial services and infrastructure space as part of its expansion plans.
Incorporated in 2007, GT Capital is involved in banking (Metrobank), real estate (Federal Land and Pro-Friends), power (Global Business Power), automotive (Toyota Motor Philippines and Toyota Manila Bay Corp.), automotive leasing and financing (Toyota Financial Services Philippines Corp.), and life insurance (AXA Philippines).
GT Capital also has a 15.6 percent stake in Manny Pangilinan-led infrastructure giant Metro Pacific Investments Corp. (MPIC), which has subsidiaries in power distribution, toll roads, water utilities, healthcare and real estate.