Metro Pacific raises $300 million in largest share offer since 2007

MANILA, Philippines - Metro Pacific Investments Corp. (MPIC), the local flagship of Hong Kong-based industrial conglomerate First Pacific Co. Ltd., successfully raised $300 million through a share offering touted as the largest equity capital market transaction out of the Philippines since 2007.

In a disclosure to the Philippine Stock Exchange, MPIC said CLSA Singapore Pte. Ltd., the sole global coordinator for the share sale, exercised in full the greenshoe option, raising P1.86 billion from the sale of an additional 620 million common shares.   

MPIC’s principal shareholder, Metro Pacific Holdings Corp., earlier completed the sale of 4.15 billion shares of MPIC at P3 apiece, raising P12.45 billion. The shares were sold to qualified institutional investors within the United States through a private placement.

The exercise of the over-allotment option brought total proceeds of the share sale to $300 million (approximately P13.98 billion).

MPIC stocks closed at P3.75 each yesterday, up 5.63 percent from P3.55 Wednesday.

“We are delighted by the success of this transaction and the strong aftermarket performance of the shares. It is a sign of confidence in both Metro Pacific and the broader Philippine market,” said Manuel V. Pangilinan, chairman of MPIC. 

MPIC chief finance officer Andrew Shepherd, for his part, said “it was evident that the demand for the shares exceeded expectations and the stock continues to trade above the offering price. Currently, it has a market capitalization of P 31.12 billion based on its listed shares.”

He said MPIC’s market capitalization could amount to P69 billion if the 9.2 billion shares recently issued by the company would be taken into account and listed.

MPIC has set aside up to P7 billion of total proceeds of the offering for cash acquisition costs of the 148.35 million common shares of Manila Electric Co. (Meralco) to be acquired from the Beneficial Trust Fund of Philippine Long Distance Telephone Co. and Crogan Ltd.

Another P4.8 billion has been allotted for repayment of short-term borrowings, which were made mainly to cover the purchase of Meralco shares in open market purchases.

The remaining proceeds from the sale will go to Metro Manila Skyway System, an elevated highway crossing over the existing South Luzon Expressway.

MPIC president Jose Ma. K. Lim earlier said the actual allocation of the net proceeds will depend on various factors including the consummation of the acquisitions of common shares of Meralco, MPIC’s proposed investment in the Skyway project, market conditions, the availability of suitable opportunities, the timing of regulatory approvals and other factors.

Lim said MPIC could use the net proceeds to invest in other infrastructure projects or assets in the Philippines or for general corporate purposes.

First Pacific, through MPIC, Philippine Long Distance Telephone Co. and other local affiliates, has accumulated around 34.7 percent in Meralco and is looking to acquire more shares of the country’s largest power utility firm as it positions itself as a strategic shareholder with appropriate board and management participation.