Aboitiz Equity Ventures’s sale of 68.331 million treasury common shares at PHP74.25 apiece has raised approximately $100 million in additional equity, further strengthening the company’s capacity to fund its growth initiatives and pursue investment opportunities.
“Overall, the private placement was well received. It was 1.7x oversubscribed, with 65% of the demand coming from foreign investors. We see this as a clear sign of the trust and confidence that the investment community has in our future and our ability to deliver on our commitments,” said Erramon Aboitiz, Aboitiz Equity Ventures President and Chief Executive Officer.
An oversubscribed share offering means demand exceeded the actual number of shares, which the company put on sale through UBS AG.
For 2016, AEV has allotted PHP58.4 billion in capital expenditures, of which PHP52 billion has been earmarked for AboitizPower’s expansion projects towards increasing its total capacity to 4,000 MW nationwide by 2020.
Message from the President & CEO
The Aboitiz Group’s growth journey over the past couple of decades has been characterized by prudence and preparedness. We took AEV and AboitizPower public and raised money before actually needing the capital; we strengthened our balance sheet in anticipation of growth to come.
In recent months, we have been seeing a lot of opportunities, both at home and in the region.
While our balance sheet and our capacity to raise money through the debt markets remain strong, your Board has decided to be prudent and prepare the company for further growth.
In line with this, the AEV Board decided to sell a block of roughly 63 million AEV common shares, held in treasury, via a private placement raising approximately $100 million of additional equity. This improves our balance sheet by giving us further borrowing capacity to fund growth initiatives, and provides additional cash that can be used for investment opportunities, as they arise.
Overall, the private placement was well received. It was 1.7x oversubscribed, with 65% of the demand coming from foreign investors. We see this as a clear sign of the trust and confidence that the investment community has in our future and our ability to deliver on our commitments.
Let us all continue to work together and create long term value to all our stakeholders.
Wishing you the very best always,
Erramon I. Aboitiz
President & Chief Executive Officer