Ayala Corporation, the Philippines-based conglomerate, disclosed on Monday that a successful private placement was made by its real estate arm Ayala Land Inc (ALI), through which the realty firm raised $356 million (P16 billion).
Ayala assisted its real estate unit in raising funds through a placement of 484,848,500 common shares at a price of P33.00 per share. The placement was conducted via book-building offering, structured as a top-up placement with all the proceeds to be received by ALI.
ALI plans to use the proceeds for expansion. The real estate giant has set aside $2.2 billion (P100 billion) in planned capital expenditure this year for its various projects.
“This equity placement will help Ayala Land pursue its growth plans and achieve its long-term strategy,” said Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala. “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, the conglomerate’s holdings in common shares will be reduced to 47.3 per cent from 48.9 per cent but it will retain voting control at over 68.9 per cent.
ALI’s share price last closed at P34 per share on Monday, down by P1.00 (2.86 per cent) from last Friday’s P35 per share.
ALI was listed in 1991 and now has more than 50 subsidiaries running several business lines such as property development, commercial leasing, and services.