JG Summit raises P8.8 B

MANILA, Philippines - JG Summit Holdings Inc. has raised P8.8 billion from the sale of common shares through a top-up placement, providing fresh funds for the conglomerate’s investments.

In a disclosure to the Philippine Stock Exchange, the holding firm of tycoon John Gokongwei said it has sold 145.65 million common shares through an accelerated overnight equity placement at a price of P61 apiece.

“The transaction was done in order to widen the shareholder base of the company and as a response to strong demand for the company’s stock,” JG Summit said.

JG Summit said proceeds from the offering would be used for general corporate purposes.

CLSA Ltd and UBS AG have been appointed as joint bookrunners for the transaction.

Lauro C. Baja III, managing director of UBS Investments Philippines Inc., said in a text message the transaction was very well received by 70 investors and was two times oversubscribed.

“The size was 52 days of average daily trading volume. Two-third long-only funds,” Baja said.

JG Summit operates its food and beverage business through subsidiary Universal Robina Corp. (URC), real estate business through Robinsons Land Corp., transportation through Cebu Air Inc., petrochemical business through JG Summit Petrochemicals Corp., and banking through Robinsons Bank Corp.

JG Summit nearly doubled its profits to P15.85 billion in the January to September period last year from P8.41 billion the previous year.

Revenues also rose nearly a fifth or 19.3 percent year-on-year to P132.7 billion from P111.18 billion, attributed mainly to the robust nine-month results of its major subsidiaries.