Stock News 2012: GT Capital IPO raised to P24.4 B

UBS Investment Bank's Offices at 299 Park Avenue in New York City (Photo credit: Wikipedia)
GT Capital Holdings Inc., the listed flagship firm of taipan George S.K. Ty, announced yesterday that UBS, the global coordinator for its recently completed initial public offering exercised in full its option to purchase an additional 6.182 million shares to meet the strong demand from global investors.

This would generate an additional P2.8 billion, raising total proceeds to $505 million or P24.4 billion.

The stock has performed strongly since listing on April 20, rising 13 percent to P513/share as of April 25.

“We are pleased with the overwhelming response to GT Capital’s IPO in the aftermarket performance such that we are able to exercise the over allotment option within three days after the listing,” said company president Carmelo Bautista.

The foreign tranche of the IPO was more than five times oversubscribed, attracting prestigious long-term institutional investors and sovereign wealth funds.

GT Capital is the primary vehicle for the management of the various interests of the Ty family in banking (Metropolitan Bank & Trust Co.), real estate (Federal Land), power generation (Global Business Power), automotive (Toyota Motor Philippines) and insurance (Phil AXA Life Insurance Corp.). Proceeds from the offering will be used to fund the expansion of various units such as the hotel and residential projects of its real estate arm Federal Land and power businesses under Global Business Power.

The IPO is the first on the Philippine Stock Exchange this year and the biggest in more than a year since Cebu Air raised $611 million in October 2010.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=801013

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Stock News 2012: Arthur Ty is new Metrobank chairman

Metropolitan Bank and Trust Company (Photo credit: Wikipedia)
The Metropolitan Bank and Trust Co. (Metrobank) has a new board chairman in Arthur Ty, erstwhile bank president. He replaces his father, Dr. George S.K. Ty as bank chairman.

The new bank president is Fabian S. Dee, erstwhile senior vice president while Francis C. Sebastian was retained as vice chairman.

The new board is still in a meeting as of presstime, as they were still deciding on management positions.

Likewise, the present board decided to expand the 2012 board to 14 seats from the present 12.

The new members of the board are Fabian S. Dee, Antonio Viray, Amelia Cabal and Vy Tonne So. Out of the new board are Antonio S. Abacan Jr. and Jose P. de Jesus (independent director).

Abacan was named Metrobank Group chairman.

Sources said that the patriach of the Ty conglomerate would remain as the guiding light of the Metrobank Group as it has been expanding its corporate reach to new ventures such as energy generation.

The change was expected as Arthur Ty has agreed to be bank president only for a five-year period.

Younger brother Alfred remains at the board as corporate secretary. He is also the president of Federal Land Inc., Toyota Motor Philippines Corp., and an independent director of the Philippine Long Distance Telephone Co. (PLDT).

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800777

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Stock News 2012: SMDC rolling out over 70,000 new units this year

One e-CommCenter, SM Mall of Asia Complex Picture taken by Exec8 December 4, 2007 (Photo credit: Wikipedia)
Amid threats of an oversupply in the residential sector, SM Development Corp. (SMDC) is rolling out more than 70,000 new units this year, valued at P37 billion to sustain the robust take up in sales in the first quarter.

In a briefing following the company’s annual stockholders’ meeting yesterday, SMDC vice-chairman and chief executive officer Henry Sy Jr. said the company is “fully committed to address the needs of the market that is seen to grow even further with the expected improvement in the economy.”

Rosaline Qua, president of SMDC, said the company is launching five new projects this year that will translate to 73,000 fresh residential units, a sharp increase from the 9,000 units developed in 2011.

In the first quarter this year, SMDC grew its net earnings by 33 percent to P1.21 billion as the number of units sold grew 51 percent to 3,684 valued at P8.97 billion or more than double the company’s sales target for the period under review.

Consolidated revenues surged 72 percent to P5.83 billion, of which revenues from real estate operations amounted to P5.61 billion, rising by 72 percent.

EBITDA went up by 38 percent to P1.49 billion for an EBITDA margin of 27 percent.

The sustained strong interest of numerous homebuyers in SMDC’s various residential condominium projects was matched by a new supply of attractive projects launched last year namely Green Residences along Taft Avenue, Shell Residences in Mall of Asia Complex, M Place @ Ortigas in Pasig, and Mezza II Residences in Sta. Mesa.

“ It reinforces our belief that the Philippines continues to have a huge underserved residential market that longs for affordable homes, a better lifestyle, and the conveniences of strategically located residences,” Sy said.

The company has set a capital spending this year of P20.7 billion this year, significantly higher than the P13 billion spent in 2011. Bulk of the programmed capital budget will go to the construction of ongoing and new projects while about P4 billion has been earmarked for landbanking.

SMDC recently raised around P6.3 billion from the issuance of five-year, fixed rate corporate notes, jointly arranged by BDO Capital and Investment Corporation and Standard Chartered Bank. The issue was oversubscribed, clearly indicating the trust and confidence in SMDC of institutional investors, which were composed of banks, trust companies, and insurance firms.

The company currently has 15 residential projects under its SM Residences brand and two projects under its M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.

SMDC currently has a landbank of 85 hectares in Metro Manila and 113 hectares in the provinces.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800775

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Stock News 2012: SMDC rolling out over 70,000 new units this year

One e-CommCenter, SM Mall of Asia Complex Picture taken by Exec8 December 4, 2007 (Photo credit: Wikipedia)
Amid threats of an oversupply in the residential sector, SM Development Corp. (SMDC) is rolling out more than 70,000 new units this year, valued at P37 billion to sustain the robust take up in sales in the first quarter.

In a briefing following the company’s annual stockholders’ meeting yesterday, SMDC vice-chairman and chief executive officer Henry Sy Jr. said the company is “fully committed to address the needs of the market that is seen to grow even further with the expected improvement in the economy.”

Rosaline Qua, president of SMDC, said the company is launching five new projects this year that will translate to 73,000 fresh residential units, a sharp increase from the 9,000 units developed in 2011.

In the first quarter this year, SMDC grew its net earnings by 33 percent to P1.21 billion as the number of units sold grew 51 percent to 3,684 valued at P8.97 billion or more than double the company’s sales target for the period under review.

Consolidated revenues surged 72 percent to P5.83 billion, of which revenues from real estate operations amounted to P5.61 billion, rising by 72 percent.

EBITDA went up by 38 percent to P1.49 billion for an EBITDA margin of 27 percent.

The sustained strong interest of numerous homebuyers in SMDC’s various residential condominium projects was matched by a new supply of attractive projects launched last year namely Green Residences along Taft Avenue, Shell Residences in Mall of Asia Complex, M Place @ Ortigas in Pasig, and Mezza II Residences in Sta. Mesa.

“ It reinforces our belief that the Philippines continues to have a huge underserved residential market that longs for affordable homes, a better lifestyle, and the conveniences of strategically located residences,” Sy said.

The company has set a capital spending this year of P20.7 billion this year, significantly higher than the P13 billion spent in 2011. Bulk of the programmed capital budget will go to the construction of ongoing and new projects while about P4 billion has been earmarked for landbanking.

SMDC recently raised around P6.3 billion from the issuance of five-year, fixed rate corporate notes, jointly arranged by BDO Capital and Investment Corporation and Standard Chartered Bank. The issue was oversubscribed, clearly indicating the trust and confidence in SMDC of institutional investors, which were composed of banks, trust companies, and insurance firms.

The company currently has 15 residential projects under its SM Residences brand and two projects under its M Place brand. For the rest of 2012, five more new residential condominium projects will be launched in Metro Manila.

SMDC currently has a landbank of 85 hectares in Metro Manila and 113 hectares in the provinces.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800775

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Stock News 2012: SM Prime net profit up 15% to P2.43B in Q1

Facade of SM City Tarlac (Photo credit: Wikipedia)
SM Prime Holdings Inc., the country’s larger retail landlord, said its net earnings increased by 15 percent in the first quarter of the year to P2.43 billion on the back of higher revenues arising from the addition of new malls and the strong growth of its China operations.

In a briefing following the company’s annual stockholders meeting yesterday, SM Prime president Hans T. Sy said the firm’s “better-than-expected performance is a welcome development and reinforces its confidence in the local economy. He expects the company to sustain its positive momentum for the rest of the year.

Sy said the results also show SM’s ability to thrive in competitive environments in China.

Jeffrey C. Lim, chief financial officer of SM Prime, said consolidated revenues went up by 16 percent to P7.03 billion while EBITDA rose 13 percent to P4.76 billion, resulting in an EBITDA margin of 68 percent. Same store rental growth climbed eight percent, an improvement from the seven-percent growth reported the previous year.

The results include the operations of the four SM malls in China, which are located in the cities of Xiamen and Jinjiang in Southern China, Chengdu in Central China, and Suzhou in Eastern China, Lim said.

The four China malls performed remarkably, with net income growing 44 percent to P140 million on the back of a 34.8 percent jump in gross revenues to P620 million. Lim attributed the robust growth to an increase in average occupancy rate, lease renewals and the opening of a lifestyle mall in Shanghai.

Lim said the malls in China currently have an average occupancy rate of 96 percent.

Consolidated rental revenues contributed 86 percent to the total, increasing by 15 percent to P6.03 billion. Additional rental space came from SM City Tarlac, SM City San Pablo, SM City Calamba, SM City Novaliches, SM City Masinag and the recently opened SM City Olongapo. These malls put in 427,000 square meters (sqm) to the company’s total gross floor area and presently register an average occupancy rate of 93 percent.

http://208.184.76.174//Article.aspx?publicationSubCategoryId=66&articleId=800327

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Stock News 2012: SM expects to close Ortigas deal in H1

Picture of the Greenhills Shopping Center (Photo credit: Wikipedia)
The SM Group owned by the family of the country’s wealthiest man Henry Sy, said it hopes to finalize a deal to take over the property holding firm of the Ortigas family in the first half this year.

“Negotiations are ongoing but talks are getting nearer and nearer to finalizing a deal, hopefully in the first half. Financing is ready. We’re just waiting for further instructions,” said Sy’s eldest son and namesake, Henry Sy Jr.

The SM Group is in talks with the Ortigas family and British banking giant HSBC, the single biggest shareholder in OCLP Holdings with a 34 percent stake.

SM Investments Corp. (SMIC) executive vice-president Jose T. Sio said the amount and details of the transaction are still under discussion and subject to finalization.

Organized in 2010, OCLP Holdings’s crown jewel is the 16-hectare Greenhills shopping complex.

The deal, when completed, will allow the SM Group to corner the lion’s share of the retail market in the burgeoning Ortigas-Pasig-Mandaluyong area.

The acquisition of a controlling stake in OCLP will also allow the SM Group to tap into the Ortigas family’s vast land in Mandaluyong, San Juan and Quezon City, further broadening its reach in Metro Manila.

The Ortigas district, which encompasses at least 100 hectares, is home to many shopping malls like Robinsons Galleria, Shangri-La, SM Megamall, Podium and St. Francis Square.

Megamall, developed and operated by shopping mall giant SM Prime Holdings Inc., sits on 18 hectares of prime land with a total floor area of about 348,000 square meters. It is currently undergoing renovation and expansion with the three-hectare parking lot in front of EDSA being converted into a commercial and office space for business process outsourcing (BPO) companies.

The expansion will give Megamall an additional 100,000 sqm of gross leasable area and will make it the largest shopping mall in the country, surpassing SM City North Edsa.

The Greenhills shopping center, on the other hand, has become a popular destination for buying gadgets and affordable imported clothes and merchandise. Its main mall, V-Mall (formerly known as Virra Mall), houses five franchises from the SM Group – Toy Kingdom, SM Appliance Center, Our Home, Watsons and Ace Hardware.

The Ortigases, whose historic roots date back to the 300-year Spanish colonial rule, are among the largest landowners in the country. They developed upscale residential subdivisions Valle Verde and Wack-Wack as well as the 77-unit Luntala townhouse project within Valle Verde 6.

Aside from the Greenhills shopping center, the group’s retail portfolio also includes the 18-hectare Tiendesitas in Pasig.

Ongoing projects by the Ortigas Group include Circulo Verde, a 15-tower residential development located on a 12-hectare property in Calle Industria in Bagumbayan in Quezon City, and the P25-billion Capitol Commons, which will rise on a 10-hectare property previously occupied by the Rizal Provincial Capitol.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=799998

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Stock News 2012: Puregold profit rises 24.5% in Q1

Front of Puregold Dau taken from an angle. (Photo credit: Wikipedia)
Puregold Price Club Inc. grew its net income by 24.5 percent in the first quarter this year to P469 million as it registered higher sales.

In a financial report submitted to regulators yesterday, Puregold said net sales rose 30.3 percent to P10.74 billion, primarily due to higher turnover as a result of new store openings in the last three quarters of 2011.

Puregold had a total branch network of 101 as of March 31, 2012, comprising 62 hypermarkets, 28 supermarkets and 11 discounters. These new stores accounted for 17.7 percent of total net sales for the period under review.

Operating income amounted to P633 million, up 18.6 percent from P534 million. Other income jumped 27.9 percent to P288 million.

On the other hand, operating expenses shot up 38 percent to P1.4 billion from P1.01 billion, largely due to the company’s expansion and renovation of old stores.

Puregold is expected to sustain its upward trajectory for the rest of the year, especially with the acquisition of the upscale S&R Membership Shopping Club through a P16.5-billion share swap transaction.

The move was intended to consolidate Chinese-Filipino businessman Lucio Co.’s retailing businesses under one umbrella.

Under the deal, the Co family will own approximately 77 percent of Puregold’s outstanding shares.

The planned consolidation will expand Puregold’s current market base, enhance shareholder value, and achieve economies of scale.

http://www.philstar.com/Article.aspx?publicationSubCategoryId=66&articleId=800003