SMIC completes $150-M placement
MANILA, Philippines - SM Investments Corp. (SMIC), the listed flagship holding firm of businessman Henry Sy, said on Monday that it completed an earlier announced top-up equity placement allowing it to raise $150 million or P6.37 billion.
SM Investments said in a Philippine Stock Exchange filing that the placement involved 9.1 million shares sold by Sy family members at P700 each, which was a 6.04-percent discount to its closing price on August 23, when the transaction was initially announced.
Despite the discount, SMIC has been trading mainly above the offer price in the last two months. The company’s shares declined 0.48 percent to P820 on Monday, giving it a market value of P503.37 billion.
The shares were sold by Sy family members, including SMIC president Harley Sy and its vice chairman Teresita Sy. To complete the top-up transaction, the sellers subscribed to the same number of new shares issued by SM Investments, ensuring that the funds return to the company.
The transaction also expanded SM Investments’ outstanding shares by 1.4 percent, in line with the original goal to increase the company’s liquidity. It is currently in the process of registering the newly issued shares for listing with the PSE, SMIC chief financial officer Jose Sio said in a text message on Monday.
SM Investments said in the disclosure that proceeds were mainly used to pay off an existing bank loan, including related interest. Macquarie Capital (Singapore) Pte. Ltd. was tapped as the underwriter and placing agent.
SM Investments owns the country’s largest shopping mall operator SM Prime Holdings Inc. and its largest lender, BDO Unibank Inc. It is also the dominant supermarket chain operator and the owner of residential condominium developer SM Development Corp.
Several companies have been tapping either the equity or debt markets to take advantage of favorable market conditions and low interest rates, respectively. But SM Investments has been doing both.
SMIC earlier this month raised $500 million by selling long-term fixed-rate bonds, with proceeds seen to help extend its debt profile. It also issued P15 billion worth of long-term bonds in July.