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MANILA - Ayala Land Inc has completed a top-up equity placement to support the next phase of its expansion program.
In a disclosure to the Philippine Stock Exchange, the real estate firm said it raised P12.2 billion from the sale of 399.53 million common shares at P30.50 per share, equivalent to a 3.6 percent discount on the five-day volume-weighted average price of the company’s shares.
Investors swamped the equity placement, which was almost three times oversubscribed, prompting Ayala Land to upsize the offering from 320 million shares.
The placement was conducted through an overnight book-built offering structured as a top-up placement with all the proceeds to be received by Ayala Land.
“This second round of equity placement will further provide Ayala Land the flexibility to pursue its growth plans as it continues to build a robust development pipeline moving forward. We are delighted to assist Ayala Land in this transaction and once again encouraged by the support of the investing community," said Jaime Augusto Zobel de Ayala, Ayala Corp (AC) president and chief executive officer.
As a result the transaction, AC reduced its holdings of Ayala Land common shares to 49 percent from 50.4 percent, but it will keep control at over 70 percent ownership of the property firm’s voting shares.
UBS Investment Bank was tapped as the sole book runner and placement agent.
Ayala Land will use the proceeds from the share placement to fund the next phase of development to sustain its high-growth trajectory. The company has identified significant land banking opportunities amounting to approximately P20 billion.
After registering a record profit for the third consecutive year, Ayala Land earmarked P65.5 billion for its capital expenditure for 2013, P46 billion of which will bankroll the completion of ongoing developments. It will also launch 69 new projects with a combined value of P129 billion this year.
Ayala Land is on the penultimate year of its 5-10-15 plan launched in 2009 with the world economy still reeling from the effects of the global financial crisis. Under the five-year plan ending 2014, the real estate firm aims to have a net income of P10 billion and a return on equity of 15 percent.
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