First Gen, the holding firm of the Lopez family’s power and energy-related businesses, will offer from 275.5 million to 360.9 million common shares at a price range of between P51 to P74 each.
Proceeds from the offering will be used for improvements in existing facilities, investments in capacity expansion which could include both potential acquisitions of power generation facilities and the development of greenfield projects, as well as for general corporate purposes, including working capital and investments.
Tapped as global coordinator and bookrunner is Credit Lyonnaise SA while BDO Capital & Investment Corp. and ATR Kim Eng Capital will serve as lead manager for the domestic offer.
The shares to be offered in both local and international markets represent 25.5 percent to 33.7 percent ownership in First Gen, which is 88.44 percent owned by First Philippine Holdings Corp. (FPHC).
The international offering is slated from Jan. 16 to Jan. 26 while the domestic offering is tentatively scheduled from Jan. 30 to Feb. 3.
Based on the price range, the market capitalization for the entire 1.07-billion common shares of First Gen will range from a minimum of P55.01 billion to P79.8 billion.
The book value of the company, based on its unaudited financial statements as of June 30, 2005, was P13.52 billion or P29.90 per share. The book value represents the amount of the company’s total assets less the sum of its liabilities less the equity of the outstanding value per share.
Once listed, First Gen will be the fifth company owned or controlled by the Lopez family traded on the exchange, coming after power utility giant Manila Electric Co. (Meralco), ABS-CBN Broadcasting Corp., Benpres Holdings Corp. and FPHC.
Meanwhile, Universal Robina Corp.’s planned share issuance has been tentatively set on Feb. 14. URC, the food manufacturing unit of Gokongwei-owned JG Summit Holdings Inc., plans to offer up to 634.78 million shares, which will come from its unissued authorized capital stock at a price within the range of plus or minus 10 percent of the prevailing market price of the common shares of the company on the day of pricing.
UBS Investment Bank has been appointed lead underwriter for the offering.
Of the estimated proceeds, P2.84 billion will go to the continued expansion of URC’s branded consumer food operations primarily in a multi-product beverage line in the Philippines as well as international markets particularly China and Vietnam.
About P2.37 billion, on the other hand, will be channelled to the expansion of the raw milling capacity and a new sugar refinery. The remaining P317.1 million will be used for additional manufacturing, machinery and equipment for URC’s agro-industrial division.
In view of the size and the increase in its trading float, there will be a 180-day lock-up on URC shares held by parent firm JG Summit.
The offering is part of a long-term strategy to unlock the value of JG Summit’s listed subsidiaries by enhancing trading floats, diversifying shareholder base, and boosting market capitalization.