ALI sets P100-billion capex, raises P16-B cash

by James Loyola
Manila Bulletin (Original link)

Ayala Land, Inc., the country’s leading diversified property developer, is investing P100 billion for capital expenditures (capex) this year in support of its aggressive expansion program.

In a disclosure to the Philippine Stock Exchange, ALI said it has just raised P16 billion to finance part of its massive capex this year through the completion of a placement of 484.85 million of its shares at P33.00 per share.


The offer price represents a 3.9 percent discount to the 5-day volume weighted average price ending January 9, 2015.

The placement was conducted via an accelerated bookbuilt offering structured as a top-up placement, in which Ayala Corporation will sell 484.85 million listed common shares to investors and subscribe to the same number of new shares from Ayala Land.

Ayala Corporation chairman Jaime Augusto Zobel de Ayala said “this equity placement will help Ayala Land pursue its growth plans and achieve its long-term strategy.”

Zobel added that “we remain committed and supportive of Ayala Land, and continue to believe that it is a key component of our portfolio and an important driver of growth at Ayala Corporation.”

As a result of this transaction, AC’s holdings in common shares will be reduced to 47.3 percent from 48.9 percent but AC will retain voting control at over 68.9 percent.

“This 16 billion peso placement represents a landmark transaction for us as it is the single largest capital-raising exercise in the 23 years that Ayala Land has been a listed company,” said ALI president Bernard Vincent O. Dy.

He added that “the funds generated will support our aggressive growth trajectory as declared in our 2020 Vision.” The firm aims to grow its annual profit to P40 billion by 2020.

The transaction saw strong investor participation from global institutional investors, with the deal size being multiple times oversubscribed. Approximately 90 percent of the demand was generated by foreign investors and existing long-term shareholders.

UBS AG was the sole bookrunner of the placement with Goldman Sachs (Asia) L.L.C. as co-lead manager and BPI Capital Corporation as domestic co-bookrunner.

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Posted by on Jan 13 2015. Filed under Business. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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