SEC clears IMI share sale, Filinvest Land’s bond issue

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(Reposted to correct the word “placement” to “offering” in the third paragraph)

The Securities and Exchange Commission (SEC) on Friday said it has approved the fund raising petitions of Ayala-led Integrated Micro-Electronics Inc. (IMI) and Filinvest Land Inc. (FLI).

Approved were IMI’s P2.2-billion follow-on offering and FLI’s P7-billion bond float.
IMI is raising funds for expansion, capital expenditure (capex), refinancing of debt and working capital, according to a notice it e-mailed to the media on Friday.

IMI expects to raise anywhere from P1.6 billion to P2.2 billion from the follow-on offering, lower than the previously set P3 billion target. IMI will offer 215 million common shares, with an oversubscription option of 85 million shares, at a price of P7.50 each.


The offer period is from November 24 to 28, and the target date for listing on the Philippine Stock Exchange is on December 5.

Earlier, IMI parent firm Ayala Corp. said it has raised $275 million (about P12.4 billion) from the sale of common shares to finance investments in infrastructure and power generation projects. 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.

For the IMI offering, BPI Capital Corp. was chosen as the issue manager, bookrunner and lead underwriter, while Investment & Capital Corp. of the Philippines and SB Capital are participating underwriters.

On the other hand, FLI seeks to raise P7 billion from the issuance of seven-year and 10-year fixed-rate retail bonds. Proceeds will be used for the payment of debts (P4.95 billion) and to fund capex requirements in the fourth quarter of this year and in 2015 (P2.19 billion).

FLI will issue P5 billion worth of bonds, with an oversubscription option of up to P2 billion. The seven-year bonds will have an interest rate of 5.5 percent, while the 10-year bonds will have a rate of 5.6 percent to 5.98 percent, both payable quarterly.

The bonds shall be issued in scripless form in denominations of P50,000 each, with minimum increments of P10,000 thereafter. The bonds were given a PRS Aaa rating by PhilRatings, and are set to be listed on the Philippine Dealing and Exchange Commission.

PRS Aaa is the highest rating from PhilRatings. Obligations rated PRS Aaa are of the highest quality with minimal credit risk.

Scripless bonds are issued without a certificate and are electronically tracked.

Because there are no longer any physical certificates to surrender, investors are no longer constrained to sell them on a per certificate basis. They have the flexibility to sell any number of bonds in their accounts at any time.

For FLI’s bond issue, BDO Capital & Investment Corp., BPI Capital Corp. and First Metro Investment Corp. serve as the joint issue managers, lead underwriters and bookrunners while EastWest Banking Corp. is the co-lead underwriter.

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