MANILA - The Philippines' Tanduay Holdings Inc said on Monday it will sell up to 3 billion new common shares in a two-tranche transaction that could raise around $880 million and widen its public float.
At the current market price of P12.24 per share, the share offer would be worth P36.7 billion ($880 million). The company has a public float of 13 percent based on stock exchange data.
Main shareholder Tangent Holdings Corp, owned by the country's second richest man Lucio Tan, will sell up to 3 billion of its Tanduay shares to the public, as the group revamps the firm into a conglomerate holding Tan's major businesses from mainly a liquor producer.
Tangent will use the proceeds to buy new Tanduay shares, the company told the stock exchange. UBS Investments Philippines Inc is financial adviser and bookrunner.
Shares in Tanduay rose as much as 3.7 percent in morning trades, as the broader market edged up 0.3 percent. Tanduay shares are hovering at 13-year highs and are up around 172 percent this year.