GT Capital IPO generates overwhelming demand

MANILA, Philippines - As foreign funds have turned bullish on the Philippines, GT Capital Holdings Inc.’s initial public offering (IPO) has generated an “unprecedented and overwhelming” demand level with the order books already covered on just the first day of bookbuilding, according to the issuer’s sole global coordinator and international bookrunner.       

In an interview, UBS Philippines managing director Lauro Baja said the GT Capital IPO has received strong support from sovereign wealth funds and prestigious long-term investors, and expects the oversubscription levels to increase further as the international roadshow is yet to get over.

“The deal is doing extremely well. Demand was overwhelming and unprecedented. Books were already covered on day 1. There could be a problem in allocating shares given the robust demand for GT Capital shares,” Baja said.

GT Capital is the primary vehicle for the management of the various interests of taipan George S.K. Ty’s family in market-leading businesses across banking, real estate, power generation, automotive and life insurance.

“The results should bode well for the both company and the Philippines. It goes to show investors’ strong confidence in the company as well as the strong reputation of the Ty family and GT Capital’s management team in delivering shareholder value for investors,”Baja said.

“I think investors were very comfortable with the company, its assets and the principal shareholders behind it. They like the assets that span major industries.”

GT Capital is selling up to 41.217 million shares to raise between P17.1 billion and P19.37 billion. The shares will be priced on April 3, ranging from P415 and P470 apiece.

In case of strong demand, GT Capital has allotted as much as 6.182 million common shares worth P2.9 billion for the greenshoe option.

Including the overallotment option, GT Capital is expected to raise up to P22.28 billion.

As much as 33 million will be sold via the IPO while up to 8.217 million shares will be sold by the company’s shareholders Ausan Resources Corp., Grand Titan Capital Holdings and Titan Resources.

The selling shareholders are expected to generate a maximum P3.86 billion from the share sale.

The domestic offer period will run from April 10 to 16 while the

listing has been tentatively scheduled on April 20.

Post-IPO, the holding firm will have a market capitalization of P74.26 billion.

Proceeds from the IPO will be used to accelerate key growth projects of the group’s property unit and acquisition of additional stakes in property and power businesses.