ALTERRA Capital Partners Inc. on Wednesday said it filed with the Securities and Exchange Commission its registration statement for its follow-on offering of 500 million shares, the price of which will be at a deep discount from its current trading price.
The company, which is in the process of renaming itself Philab Industries Inc., said the indicative offer price for the follow-on offering is from P3.25 to P6.75 per share, or a discount of between 55 percent and 12 percent, from its last traded price of P7.27.
Philippine Commercial Capital Inc. is the lead underwriter for the follow-on offering.
“The listing application for the follow-on offering will be filed with the Philippine Stock Exchange Inc. on January 18or 19,” it said.
Philab, a provider of health-care tool kits to many government agencies, was supposed to become public through its backdoor listing using Alterra last year.
It was during the last half of 2016 when the company’s board approved several resolutions for the backdoor listing, deemed to occur when a listed company acquires, merges or combines with an unlisted company or vice versa. The combination of the two firms will result in a substantial change in the business, membership of the board of directors, or voting structure of the listed company.
The follow-on offering is one of the activities for the entry of Philab.
“The purpose of the transaction is to revive the business operations of, and give value to, ALT [Alterra]. As may be noted from its financial statements, ALT has no substantial assets. Through the transaction, new businesses will be infused into the company which will allow the company to take initial steps toward providing its shareholders with better returns on their investment,” it said in a previous disclosure.
“Philab Industries shall also benefit from its acquisition by ALT, as it will have the exposure to capital markets that could help in the business operations of Philab Industries. Following the infusion of the sale shares into ALT, ALT is expected to generate income out of Philab Industries’s expanded business operations, increase its revenues, as well as the market price of its shares.”
Last August Alterra’s majority owners Rafael Alcantara, Alfonso Anggala and Star Alliance Securities Corp. sold the company to businessman Hector Tomas Navasero and Genomics Inc. It bought the shares for an aggregate amount of P362.32 million.
Alterra, formerly iRipple Inc., said it would acquire 361,390 shares, or 100 percent of Philab, for P500 million.
Navasero’s group also controls the majority of Philab, which reported a net income after tax of P43.24 million in 2015, up from just P3.53 million in 2014.