April 17, 2013

Biggest ever: Lucio Tan firm ‘IPO’ nets P38B


Riding on the country’s newly minted investment grade rating, the Lucio Tan-led conglomerate LTG Group Inc. raised $920 million (P37.72 billion) from the sale of shares of stocks in a landmark equity deal that commanded unprecedented global investor interest and a hefty market premium.

It was the biggest ever equity offering overseas by a Philippine firm.
The pricing of P20.50 per share put a 21-percent premium on the three-month average before the deal.

Analysts said the deal price—which was set right at the top end of the indicative price range of P18 to P20.50—was not cheap. But they noted that offshore investors were likely banking on the favorable Philippine macroeconomic backdrop alongside rosy long-term prospects for LTG.
On news of LTG’s equity deal, the company’s shares surged 11.11 percent to a record high P23 per share.

The group’s selling proposition for LTG is that it’s a large conglomerate owned by one of the Philippines’ most prominent businessmen, with two-thirds of its business focused on consumer-based segments and most of which were quite dominant in their business lines.

Full news here: http://business.inquirer.net/117271/lucio-tans-ltg-group-raises-920m-through-largest-ipo-in-ph