DOMESTIC book runners of San Miguel Corp.’s (SMC) planned multibillion fund-raising on Tuesday announced their allocation for bourse trading participants.
In a letter dated April 18 and posted at the Philippine Stock Exchange (PSE) website, the domestic book runners said they allotted P804-million worth of SMC common shares for brokers as part of the conglomerate’s $850-million fund-raising exercise.
About $100 million of this will be allocated for the domestic tranche with a green shoe option of 10 percent.
The domestic book runners are ATR KimEng Capital Partners Inc., BDO Capital & Investment Corp. and SB Capital Investment Corp.
Should all 134 active brokers take part in the offering, each trading participant will likely get an allocation of P6 million each.
“The aggregate number of Offer Shares to be offered to the [trading participants] will be determined once the final offer price has been set on pricing date, which is expected to occur on April 20, 2011,” the book runners said.
For the equity component of SMC’s fundraising activity, book runners have given a price range of P110 to P140, an IFR report said.
When asked to confirm the price range, Ed Franciso, BDO Capital president said, “[It’s] not official.”
The offer period will run from April 25 to 29. The shares will be crossed at the stock market on May 5.
SMC shares were last traded at P153 before the company was cleared for a voluntary trading suspension to “deter any speculative transaction” ahead of its follow-on offering.
SMC officials refused to comment on the offer price of the shares, which was earlier pegged at an indicative price range of P200 to P250. But Ramon Ang, SMC president, assured that investors won’t get burned from the share sale.
SMC and Top Frontier Holdings Inc., which owns 47.5 percent of the total capital stock of the conglomerate, is raising $850 million later this month from the sale of a combination of secondary common shares and dollar convertible bonds to increase the food and beverage giant’s public float and beef up its cash to finance its aggressive diversification drive.