ATR-Kim Eng cuts stock rights offer price

ATR-Kim Eng Financial Corp. has scaled down the price for its planned stock rights offering to P2.10 per share from P2.70 apiece.

ATR Kim-Eng likewise increased the number of shares to be offered to the public from the original 230.625 million to 296.77 million.

In a notice to the Philippine Stock Exchange, ATR Kim Eng executive vice-president Renato Leveriza Jr. said the revised offer price will “enable the company to offer a greater number of shares to the public, thereby helping to broaden the firm’s shareholder base and enhancing the liquidity of its common shares.”

“The company believes that a lower offer price will be more responsive to current equity capital market conditions,” Leveriza said.

Shareholders can buy three common shares for every seven shares held as of Oct. 15.

The offer will start on Nov. 25 and run until Dec. 3 with the listing of the shares set on Dec. 11.

The company is hoping to raise P623.23 million through a stock rights offering to fund the expansion of its insurance and lending businesses as well as real estate ventures.

Around P400 million of the expected proceeds will go to the improvement of ATR-Kim Eng’s retail brokerage and asset management operations, and the expansion of the Department of Education Teacher Lending program and real estate business.

About P80 million to P120 million will be used to repay debt to BPI Family Bank (P41.25 million), and Union Bank of the Philippines (P77.67 million).

Another P80 to P120 million has been set aside for working capital and other corporate purposes.

ATR-Kim Eng said its major shareholders ATR Holdings Inc. and Kim Eng Holdings Limited of Singapore, are willing to fully take up their stock rights entitlements. — Zinnia dela Peña