Top–up placement pulls down share price
Gokongwei-led JG Summit Holdings Inc. raised P8.9 billion from an overnight top up placement of shares.
JG Summit reported that it sold 145.65 million common shares priced at P61 each — a 12.7 percent discount from P69.90 per share from Wednesday.
The placement discount resulted in an 11.37 percent drop JG share from P69.90 to P61.95 yesterday.
The company said the issue was met by strong demand from varied investors that increased its shareholder base.
The company said the proceeds from the offering will be used for general corporate purposes.
CLSA Limited and UBS AG were appointed as joint bookrunners for the placement.
JG Summit earlier reported an 88 percent surge in its January to September net income to P15.85 billion from P8.41 billion same time last year. Revenues rose by 19.3 percent to P132.7 billion from P111.18 billion a year ago.
Incorporated in 1990, JG Summit is the holding firm of Gokongwei family’s businesses in foods, agro-industrial and commodities, real estate and hotel, air transportation, banking and petrochemical. The company also has investments in telecommunications and power distribution.
The firm’s subsidiares are JG Summit Petrochemical Corp., CP Air Holdings Inc., URC, Robinsons Land and Robinsons Bank. It has 8-percent interest in Philippine Long Distance Telephone Company and 27.1-percent stake in Manila Electric Co.