MPIC raises P1.86 billion from share sale

The Philippine unit of Hong Kong-listed First Pacific Co. Ltd. announced Thursday that it has raised fresh fund through the sale of new shares. In a statement, Metro Pacific Investments Corp. (MPIC) said CLSA Singapore Pte Ltd., as sole global coordinator and stabilization agent through CLSA Ltd., has exercised the full greenshoe option on the recent placement, raising P1.86 billion. After completion of the re-launch, MPIC with its principal shareholder, Metro Pacific Holdings, Inc. (MPHI) entered into a placement agreement with CLSA in line with the offer and sale by MPHI of 4.15 billion common shares of MPIC. The agreement provided for an over-allotment option for the additional 620 million common shares of MPIC held by MPHI, exercisable by CLSA Ltd. in its capacity as over-allotment agent, pursuant to a greenshoe agreement. Under an over-allotment option, MPHI may be required to sell up to an additional 620 million common shares of MPIC held by it, at the same offer price, solely to cover over-allotments. Total proceeds of the issue consequently rose to $300 million, making it the largest equity capital markets transaction out of the Philippines since 2007. “It is evident that the demand for MPI shares exceeded expectations and the stock continues to trade above the offering price," Andrew G. Shepherd, MPIC chief finance officer said. Shepherd added that currently, MPIC has a market capitalization of P31.12 billion based on its currently listed shares, however, it has recently issued 9.2 billion common shares in connection with the recently completed re-launch and to fund the purchase of Meralco shares from BTF and Crogan. “If taken into account and listed, will at current market prices effectively bring our market capitalization to P69 billion" he said. Manuel V. Pangilinan, MPIC chairman, meanwhile, said that the company is delighted by the success of this transaction and the strong aftermarket performance of the shares. “It is a sign of confidence in both Metro Pacific and the broader Philippine market," he added. - GMANews.TV