Ayala Land raises P13.6B from share placement
MANILA, Philippines - Leading property developer Ayala Land Inc (ALI) raised P13.6 billion from an overnight top-up placement of 680 million new common shares, which will fund the company's capital expenditures.
This was said to be the largest overnight placement in the Philippines, and the largest by a real estate company in Southeast Asia since 2005.
"We are delighted with the investor community’s continued strong support of Ayala Land. This capital raise builds on the company’s recent performance and positions us well to capture the attractive real estate growth opportunities we see throughout our country," said ALI chairman Fernando Zobel de Ayala.
In a statement, Ayala Land said the transaction was conducted via an overnight bookbuilt offering structured as a top-up placement.
Ayala Corp. sold 680 million of listed ALI common shares to qualified buyers and institutional investors at P20 per share throug the private placement. The proceeds were then infused into ALI as subscription for the same number of new ALI shares at the same price.
Ayala Corp. said the ownership in the voting stock of ALI will be marginally reduced from 73.07% to 71.22%. In common stock, Ayala Corp.'s ownership will be reduced from 53.06% to 50.43%.
"The transaction is not expected to result in any impact on Ayala Corp.'s cash flow and net income. Ayala Corp. will maintain the same number of common shares it held in ALI prior to the transaction," Ayala Corp. said, in a disclosure.
The transaction was initially launched as a top-up placement of 530 million shares at an indicative price range of P19.80 - P20.20 per share. However, the offer was several times oversubscribed, and ALI decided to increase the offer size to 680 million shares.
ALI said it will use the proceeds for its expansion projects this year. The company earlier announced it was allocating a record P37 billion in capital expenditures this year.
ALI has also identified land banking opportunities, worth an estimated P36 billion, in the next 2 to 3 years. Of the amount, P20 billion may be allocated for Makati and other parts of Metro Manila, while the remaining balance in Nuvali, parts of Luzon, Visayas and Mindanao.
Last week, ALI broke ground for its P65-billion Vertis North project in Quezon City, which is expected to become the premier central business district in northern Metro Manila.