Tanduay sets follow-on offer price at P4.22/shr
MANILA, Philippines - Lucio Tan-led rum maker Tanduay Holdings Inc. has set the final price of its follow-on stock offering at P4.22 per share, at the middle of a previously given P3.88-P5.22 price range.
At P4.22, the company will raise as much as P1.68 billion in proceeds that will be used to finance its expansion plans.
The final offer price represents a 17.2% discount to Tanduay's last closing price of P5.10 per share in the market.
Tanduay said the company is undertaking the capital-raising exercise to finance the expenditure requirements of wholly-owned subsidiary Tanduay Distillers Inc., and other units Absolut Distillers Inc. and Asian Alcohol Corp.
At the same time, it said it will launch new innovative products that will compete with top rum brands around the world.
"Tanduay believes that it possesses the capability to attain its goal of becoming the number one seller of rum in world," the company said.
The offer involves 389.138 million existing Tanduay shares owned by controlling shareholder, also Lucio Tan-led Tangent Holdings Corp.
After the transaction, ownership of Tangent Holdings in Tanduay will drop to 87.4% from 97.1%.
Tanduay's public float, meanwhile, will increase to 12.6% from current 2.9%. The offer period will run from December 5 to 9.
The shares will be crossed in the stock exchange on December 15.