STI sets final offer price at P0.90

Posted at 10/23/12 6:17 PM

MANILA, Philippines - STI Education Systems Holdings, Inc. has set the final offer price for its follow-on offering at P0.90 apiece, hoping to raise as much as P2.7 billion to fund its expansion projects.

The final offer price is lower than the maximum price set at P1.50 per share earlier and the firm's closing share price of P1.39 on Tuesday.

Under the plan, STI will sell 3 billion common shares, which is composed of 2.62 billion primary shares and 105.2 million secondary shares owned by Korea Merchant Banking Corp. The remaining 273 million optional common shares has been set aside to cover overallotments.

The offer period will run from Oct. 22 until Oct. 31, while listing of the shares has been tentatively set on Nov. 7.

STI will be using the proceeds from the follow-on offering to help fund its plan to expand the capacity of its schools across the country and increase total student population to 100,000 over the next three to four years.

The firm earlier said it may spend P5 billion for such in improving schools located in Caloocan, Ortigas-Cainta, Cubao, Las Pinas, Davao, Cagayan de Oro, Calamba, Cebu and Lucena.

UBS and Religare Capital Markets Ltd. have been tapped as joint lead international underwriters while UBS Investments Philippines and First Metro Investments Corp. will be joint lead domestic underwriters for the follow-on offering.

STI maintains and operates 65 STI branded college campuses and 20 educational centers with 67,361 students currently enrolled.