MANILA, Philippines - Filipino-Chinese tycoon George S.K. Ty is taking his holding firm GT Capital Holdings Inc. public with plans to raise as much as P24.657 billion in what could be the first maiden share sale by a major local conglomerate in seven years.
GT Capital is the primary vehicle for the management of the various interests of the Ty family in market-leading businesses across the banking, real estate, power generation, automotive and life insurance sectors.
Informed sources told The STAR that GT Capital plans to sell up to 41.217 million common shares through a primary and secondary offering at a maximum price of P520 each to generate P21.432 billion in proceeds.
The company has also set aside as much as 6.182 million common shares worth P3.21 billion for the overallotment option in case of strong demand for the issue. Including the greenshoe option, the share sale could fetch up to P24.66 billion.
The offer shares represent 26 to 30 percent of the company’s outstanding capital stock post-IPO.
UBS is the sole global coordinator and international bookrunner for the share sale while First Metro Investment Corp. is the sole domestic underwriter.
Up to 33 million new common shares will be issued through a primary offering and up to 8.217 million existing shares will be sold by shareholders Ausan Resources Corp., Grand Titan Capital Holdings and Titan Resources Corp.
GT Capital intends to use proceeds from the primary offer for repayment of existing debt, investment in existing businesses as well as new business development initiatives, and general corporate purposes.
SM Investments Corp., the holding firm of retail tycoon Henry Sy, was the last local conglomerate to go public, raising P25.65 billion from the its market debut in March 2005.
Ty founded Metropolitan Bank & Trust Co. in 1962, which has now grown to be the country’s second largest lender by asset. He took the first steps towards building a financial conglomerate in 1972 when he established First Metro Investments Corp., which is now the largest local investment house in the country.
In 1980, Metrobank acquired controlling interests in PSBank, currently the nation’s second largest thrift bank. Through the years, Metrobank acquired and merged with various smaller banks such as Philippine Banking Corp., Asian Bank, Solid Bank and Global Business Bank.
As of end-2011, the Metrobank Group had a total of 785 branches in the country, of which 585 were operated by Metrobank and 200 by PSBank. Overseas, it has presence in Taipei, New York, Guam, Tokyo, Seoul, Pusan, Osaka, Beijing and Hong Kong.
Being a universal bank, Metrobank was licensed to invest in allied undertakings and in 1988, formed a joint venture with the Ty-family owned Titan Resources Corp. and Japan’s largest automaker, Toyota Motors Corp., to form Toyota Motors Philippines, the exclusive importer and wholesale distributor of Toyota and Lexus brand motor vehicles in the country.
In 1999, the Ty family’s Metro Philippines Life Insurance Corp. forged a joint venture with FMIC and the AXA Group of France to form AXA, which is now the third largest provider of life insurance solutions in the country in terms of total net premium income.
In the non-financial sector, the Ty family has made its mark as one of the top real estate developers in the country with more than 50 completed projects throughout the combined 40 years of operating history of Federal Homes and Federal Land Inc. Among Federal Land’s notable projects include the GT International Tower along Ayala Ave. in Makati, Bay Garden in Pasay and Marquinton Residences in Marikina.
Federal Land is currently developing a P20-billion mixed-use complex in the northeastern part of Bonifacio Global City.
The Ty family has also ventured into the power generation business through Global Business Power Corp., which is currently one of the largest independent power producers in the Visayas region with a combined gross dependable capacity of 627 megawatts.