Shopping mall and banking conglomerate SM Investments Corp. (SMIC) has raised $150 million via an overnight top-up share sale to institutional investors.
In a filing with the Philippine Stock Exchange on Friday, SMIC disclosed that its board of directors approved the group’s placement of primary common shares worth $150 million to institutional investors, via an overnight top up placement.
SMIC specified in a separate disclosure that it issued 7.25 million primary common shares at P990 a piece. The transaction, according to the Henry Sy-led holding firm, was upsized from strong investor demand.
“The proceeds of the placement will be used to refinance some of the company’s existing obligations and for general corporate purposes. The placement will also further enhance the free float and liquidity of SM shares,” SMIC said.
SM appointed UBS AG, Hong Kong Branch as the underwriter and placing agent for the transaction. On Monday, SMIC, through its appointed depositary, the Bank of New York Mellon, launched its American Depositary Receipt (ADR) Level 1 program.
Under the program, ADR securities issued in the US representing SM common shares can be traded over-the-counter under the ticker symbol SMIVY. One SM ADR represents 0.5 common shares of SM.
This facility would allow US investors to trade SM common shares in their own time zone, and to settle their transactions locally. As such, it offers convenience and reduces currency risk on the part of the investor as they acquire the ADR in US dollars.
Madelaine B. Miraflor