GT Capital’s follow-on offer oversubscribed

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DOMESTIC retail investors snapped up the P12 billion preferred shares offered by listed conglomerate GT Capital Holdings Inc., according to one of the joint underwriters of the follow-on offering.

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BPI Capital Corp. said that at the close of the offer period on Friday, the share sale was “highly oversubscribed” by multiple times, “driven by domestic demand, with retail more dominant than institutionals.” It did not provide specific figures.

BPI Capital is one of the joint underwriters of the transaction together with First Metro Investment Corp. and BDO Capital & Investment Corp.

During the offer period, GT Capital said it had already registered more than five times oversubscription from both local and foreign investors.

GT Capital sold 12 million perpetual preferred shares for P1,000 each, which are classified into two types: Series A offer shares with a 4.6299-percent annual dividend rate, and Series B offer shares with 5.0949-percent per annum rate. The preferred shares are classified as cumulative, non-voting, non-participating, and non-convertible.

The shares are expected to be listed on the Philippine Stock Exchange on October 27.

Net proceeds P11.92 billion will be used to pay maturing debt obligations (P7.5 billion) and financing strategic acquisitions (P4.42 billion).

GT Capital chief financial officer Francisco Suarez told reporters earlier that the company is looking for acquisition opportunities in the financial services and infrastructure space in a bid to expand its portfolio.

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).

It also holds a 15.6 percent stake in the Manny Pangilinan-led infrastructure giant Metro Pacific Investments Corp. (MPIC), which has businesses in power distribution, toll roads, water utilities, healthcare and real estate.

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1 Comment

  1. Hi Kristyn,

    I very much liked your very informative and interesting article. We are co-hosting a capital markets/corporate finance seminar at the Makati Shangri la Hotel on the morning of 23rd November if you or a colleague would like to attend?

    Kind regards

    Robin Stevens

    Head of Capital Markets, Crowe Horwath International