MANILA - Sy-owned conglomerate SM Investments Corp. successfully raised US$150 by issuing shares through "top-up placement," according to the company's chief finance officer Jose T. Sio.
SM Investments, in a disclosure to the stock exchange on Friday, said its board of directors approved the placement of primary shares worth $150 million to institutional investors.
The top-up is meant to further enhance the free float and liquidity of company shares, aside from raising additional funds for the firm.
SM appointed Macquarie Capital (Singapore) Pte Limited as the underwriter and placing agent.
"The proceeds of the placement will be used to refinance some of the company's existing obligations and for general corporate purposes," SM Investments said.
Sources familiar with the transaction said the shares were sold at P700 per share, a discount from the stock's Thursday's close of P745 per share. The transaction was reportedly 1.7 times oversubscribed.
The transaction is the second fund raising activity undertaken by the company this year.
Last July, the conglomerate raised P15 billion from issuance of retail bonds. Proceeds will be used to finance the company's capital expenditure for the next five year.
The bonds were purchased by a wide spectrum of investors ranging from individuals in the retail market, to banks, investment funds, pension funds, insurance companies and other corporates.
Earlier, the conglomerate reported a 13-percent rise in first half net income to P10.9 billion from P9.6 billion in first half of last year. Earnings growth was driven largely by strong earnings growth of residential development, banks and the mall operations.
Total revenues also increased by 14 percent to P105.2 billion from P92 billion as all the core businesses delivered on their sales targets.
During the first six months of the year, the banks continued to provide the largest contribution to the group's consolidated net income with a 30.9 percent, followed by retail operations with 28.2 percent. Malls came in third with 24.2 percent followed by property development with 16.7 percent.
For this year, SM Investments is targeting 12-14 percent increase in net income.
It also plans to spend P56.8 billion in capital expenditures for this year primarily to build new shopping malls and expand residential businesses.