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ATR
KimEng Capital (ATRKEC) plans to raise P5 billion for
mid-cap companies via private placement.
Its
president Manuel Tordesillas told reporters the company
is targeting to arrange the sale of shares to private
investors who are involved in the property,
infrastructure, information technology, and business
process outsourcing industries.
ATRKEC
is a unit of listed ATR KimEng Financial Corp.
Private
placement—or the sale of securities directly to an
institutional investor such as a bank, mutual fund,
insurance company, pension fund, or foundation—has been
the “go-to” option of companies seeking to raise capital
as going public is not enticing under the current weak
market scenario.
In July,
listed IPVG Corp. announced it was raising P150 million
from the sale of 50 million shares via private
placement.
The
company has priced the share at P3 each. The shares for
sale will be taken out of IPVG’s authorized capital,
which it recently increased from P800 million to P1
billion.
Last
year, IPVG, which is heavily involved in information
technology-related concerns, sold through private
placement some 50 million shares valued at P400
million.The proceeds were used for the expansion of its
data center, on-line games and contact-center
businesses. The fund-raising activity also allowed the
company to invest in new capital equipment, fixed
assets, and increase working capital for business
expansion.
Parent
firm ATR KimEng Financial Corp. previously said it is
targeting to raise over P623 million from a follow-on
rights offering scheduled next quarter.
The plan
is to sell up to a total of 230,825,742 common shares at
an issue price of P2.70 per share. The shares, which
carry a par value of P1 each, will be offered at a ratio
of one share for every three shares owned.
“The
additional funding raised will be used to finance the
expansion of the company’s three business segments,
namely, the capital markets, insurance and lending and
real estate,” said executive vice president Renato
Leveriza Jr.
ATR
KimEng Financial specializes in capital markets,
insurance, real estate and other investments. Its
wholly-owned subsidiary, ATR KimEng Capital Partners
Inc., is the country’s largest nonblank-related
investment house, while its stockbrokerage arm—ATR
KimEng Securities Inc.—is the leading Philippine-owned
securities company. The group is involved in corporate
finance and advisory services (equity initial public
offerings and secondary offers, bond underwriting,
mergers and acquisitions, debt restructuring);
stockbroking and equity research; life and general
insurance underwriting and distribution, and insurance
broking; asset management (mutual funds and trust fund
management); foreign exchange and fixed income broking;
and real-estate investments. |
