Do Not Read This: Diego Cagahastian from Opinyon
Do Not Read This

SEC buckles down to work

Oct 14, 2021, 1:40 AM
Diego S. Cagahastian

Diego S. Cagahastian

Columnist

WHEN the Securities and Exchange Commission (SEC) does its job on time and judiciously, the capital markets are able to contribute more in the nation's efforts to recover from the COVID-19 pandemic.

Existing companies with expansion plans will be able to go ahead with these plans, thereby creating more jobs for the unemployed and the underemployed, and revenues for themselves, their stockholders, and the government.

Lately, the SEC cleared the offerings of Ayala Land, Inc., ($:ALI), Synergy Grid & Development Phils, Inc., ($:SGP), Megawide Construction Corp., ($:MWIDE) and The Keepers Holdings, Inc. ($:KEEPR).

The offering of listed property developer Ayala Land covers P50 billion worth of fixed-rate, peso-denominated bonds under shelf registration in one or more tranches within three years.

The first tranche will offer up to P2.75 billion fixed-rate bonds due 2031, with an oversubscription option of up to P2.75 billion.

Ayala Land is expected to earn up to P5.43 billion from the offer if the oversubscription option is fully subscribed.

The proceeds will be used to partly refinance the property developer’s short-term loans and for capital expenditures for projects in Batangas, Laguna, and Bulacan.

Meanwhile, Synergy Grid will offer up to 1.05 billion common shares at P15 to P25 apiece, with an overallotment option of up to 101 million common shares that will be offered by shareholders Henry Sy, Jr. and Robert Coyiuto, Jr.

When the $:SGP shares are listed and traded in the PSE, this means the suspension of trading for Synergy Grid stocks will be lifted.

Some P25.69 billion is expected to be earned from the offer, but Sy and Coyiuto will not receive the proceeds but will use these forsubscription to the non-voting preferred shares to be issued by the National Grid Corp. of the Philippines (NGCP).

The SEC said: “The follow-on offering is scheduled to run from Oct. 26 to Nov. 2, with the shares to be listed on the PSE on Nov. 10, based on the latest timetable submitted to the SEC."

The joint global coordinators and joint bookrunners for the transaction are BofA Securities, J.P. Morgan Securities plc, and UBS AG Singapore Branch. BDO Capital will be the lone domestic coordinator, and will be the joint domestic lead underwriter and joint bookrunner together with BPI Capital and PNB Capital and Investment Corp.

Also last week, the SEC gave the green light for Megawide’s offer consisting of 30 million cumulative, redeemable, non-voting, non-participating, and non-convertible perpetual Series 4 preferred shares at up to P100 apiece, with an oversubscription option of up to 10 million preferred shares.

The offer is expected to earn P3.97 billion assuming that the oversubscription option is fully exercised.

It will be used to redeem Megawide’s Series 1 preferred shares.

The shares will be listed on the PSE on Oct. 22.

Another approval was made by the SEC, this time on the offering of The Keepers Holdings, formerly Da Vinci Capital Holdings, Inc., which consists of 3 billion common shares priced at P2 to P2.50 apiece.

The firm expects to net P5.82 billion to P7.29 billion from the offering, which will be allocated for “strategic acquisition opportunities, expansion of product portfolio and distribution channels, investments in distribution and logistics

network, working capital, and for general corporate purposes.”

The SEC said the offering will run from Nov. 8 to 12, adding that the shares will be listed on the PSE on Nov. 22.

The issue managers, lead underwriters and bookrunners of this offer are China Bank Capital Corp., PNB Capital, and SB Capital Investment Corp.

Now that the nation is recovering from the pandemic and the economy is on its way to full opening, every government agency is expected to perform better and outdo expectations.

The SEC should continue providing the best service to the capital markets, companies and investors, both institutional and retail, and the general public.

Feedback is welcome at ports.reports@gmail.com.


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