Shares of local steel giant TKC Steel Corp. rose by three percent on the resumption of trade yesterday, closing at P10 compared with the additional share offer price of P9.68 each share.
A total of 75.61 million TKC Steel shares changed hands yesterday valued at P748.36 million.
The company offered to the public a total of 235 million shares through an additional share issuance, raising around P2.2 billion.
During the listing of additional shares on the exchange which had no less than President Arroyo as special guest, TKC Steel chairman Ben Tiu said the installation of the company’s blast furnace will “bolster the Philippines’ reputation as a reliable exporter of quality steel.”
The blast furnace, which will be the country’s first, is expected to be operational next year.
The facility is expected to double the production capacity of TKC Steel’s local plant from 300,000 MT to 600,000 MT annually by the fourth quarter of 2008.
Proceeds from the offering will be used to acquire new facilities and improve the operation of its two subsidiaries.
TKC Steel has set aside P400 million for the establishment of the blast furnace facility.