JG Summit gets P8.8 billion from share sales

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MANILA – Conglomerate JG Summit Holdings Inc. was able to generate P8.8 billion in sales from placement of shares to new investors.

According to a disclosure to the Philippine Stock Exchange, the company was able to sell around 145 million of shares to new investors at P61 per share or at 12.7 percent discount to close the share price at P69.95.

“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,” the company said in a statement.

It added, “The proceeds from the offering will be used for general corporate purposes.”

A top-up placement is a strategy used to raise capital. It involves shareholders lending out some of their shares for sale to new investors.

However, the controlling shareholders are required to get the same number of shares at the same price.

On Wednesday, the book-building was done through the assistance of investments banks such as CLSA and USB.

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According to Lauro Baja, managing director of UBS Philippines, the books were oversubscribed by as much as two times of the base offer. He added that about 70 investors participated in the book-building.