SM Prime Holdings share sale raises P18B

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SM Prime Holdings Inc. said it raised P18 billion from the sale of treasury shares to fund capital expenditures, acquisitions, and a recently announced partnership.

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In a disclosure to the Philippine Stock Exchange, SM Prime said the sale of 1.06 billion treasury shares was done through an overnight bookbuilding process, and was met with strong demand “from high quality institutional investors in Asia, Europe and the United States.”

“Proceeds from the placement will partially finance the company’s capital expenditures, general corporate purposes, and potential acquisitions, including the recently announced partnership in OCLP Holdings Inc., the holding company of Ortigas & Co., owners of strategic land bank and properties in key cities around Metro Manila,” SM Prime said.

J.P. Morgan Securities Plc and Macquarie Capital Securities (Singapore) Pte. Ltd. acted as bookrunners while BDO Capital & Investment Corp. served as domestic lead manager.

SM Prime has a five-year plan that involves P400 billion in capital expenditures to double 2013 revenue and income by December 2018. The plan also seeks to double existing malls, offices, hotels and other leisure-related developments.

As of end-June, SM Prime has already used 30 percent of the P60.9-billion capex for 2014, of which P30 billion was earmarked for mall development, P22 billion for residential development, and P8.9 billion for office buildings, hotels and land banking for various purposes.

SM Prime is the property subsidiary of listed conglomerate SM Investments Corp.

From January to September this year, SM Prime grew its net income to P13.5 billion, 12 percent higher than last year’s comparative P12.35 billion.

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