PSE prices stock rights offer at a premium

THE Philippine Stock Exchange, Inc. (PSE) has priced its stock rights offer (SRO) at a premium, the underwriter of the deal said on Friday.

BDO Capital and Investments Corp. President Eduardo V. Francisco said PSE’s SRO will be sold at P252 per share, above its closing price of P236.20 at the stock exchange on Friday.

“It was priced at a premium over today’s P236.2 close showing belief of investors in our capital markets,” Mr. Francisco said in a text message to reporters.

With the sale of 11.5 million shares, the SRO will allow the PSE to raise P2.898 billion. Proceeds of the offer will be used to partially finance its acquisition of the Philippine Dealing System Holdings Corp. Remaining funds will be used for general corporate purposes and for the introduction of new products until 2020.

Due to unfavorable conditions in the global market, the SRO’s timeline was adjusted — it will now run from March 12 to 16, having previously been set from Feb. 26 to March 2.

The fund-raising activity will likewise help the company bring down broker ownership to less than 20%, which is needed to secure the Securities and Exchange Commission’s approval to merge the PSE with the fixed-income bourse.

The PSE posted an 18% net income increase in 2017 to P825 million, boosted by higher trading activity and one-time gains from the sale of its Tektite office in Ortigas. — Arra B. Francia