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By Arra B. Francia Reporter
AYALA CORP. (AC) raised 8.07 billion pesos through a private placement of an institutional investor, bringing fresh capital for the acquisition of
In a statement to the stock market on Monday, the conglomerate listed on declared to have concluded the sale of 8.81 million common shares to P916 each to a single long-term institutional investor.
The transaction was executed
The stock price represents a discount of 1.08% over the company's 30-day weighted average closing price.
"We intend to use the proceeds to acquire properties or assets" Ayala or for the payment of debt incurred prior to the issuance of such shares, "said AC in the disclosure.
The private placement actually increased the company's public float to 52.3% from 51.6% .AC declared that it will file an application for listing of shares on the Stock Exchange Philippine (PSE) "as soon as possible."
Researched for Comment, Philstocks Financial, Inc. Research Director Justino B. Calaycay, Jr. said the conglomerate may have chosen to raise funds through private placement to avoid the current market volatility
"AC may have opted for this financing route given prevailing market conditions where a public offering may not generate sufficient interest, including at the price of the index. PSE dropped sharply from its top of 9 Last January 078 to 6 929.86 June 26, the market participants remaining away, the volume of transactions being average only P3. According to analysts, the index could be close to reversing this trend, the main index gradually testing the resistance of 7,400 the previous week.
AC is one of the oldest conglomerates in the country and has core business in the areas of real estate development, banking, telecommunications, water, electricity, and other industries. electricity, manufacturing and the automobile.
This year, AC has programmed investment expenditures of 249 billion pesos, or 44% more than what it has spent in 2017 to finance its investment program, as well as real estate, telecommunication and water units.
Ayala Land, Inc., (ALI) will alone spend a capex of 111 billion pesos this year as it seeks to take advantage of the strong demand for residential projects. In parallel, ALI will launch projects worth 125 billion pesos this year, 25% more than in 2017.
Net profit attributable to shareholders of the parent company rose by 10% to 7.7 billion The first quarter of 2018, after revenues increased by 17% to 70.29 billion pesos during the period.
Ayala shares dropped P9 or 0.94% to finish at P951 every Monday
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