MANILA, Philippines - Lucio Tan-owned Tanduay Holdings Inc. (THI) has fixed the price of its follow-on offering at P4.22 per share, to raise around P1.68 billion.
The company set the offer price following a book-building program last week for the upcoming issuance of 398.14 million shares owned by majority shareholder Tangent Holdings.
At the end of the transaction, Tangent will own 87.4 percent of THI from 97.1 percent.
The Philippine Stock Exchange approved THI’s request for the voluntary suspension of trading of its shares from Dec. 1 to 14. Trading resumes on Dec. 15.
The offer period will run from Dec. 5 to 9.
PNB Capital and Invesment Corp. is the issue manager and bookrunner for the issue, along with Asian Alliance Investment Corp.
Proceeds from the offering will be used to bankroll the expansion of THI’s subsidiaries as it aims to go global. THI expects to further bolster its position in the rum industry, using proceeds from the fund-raising program.
The company is keen on penetrating the US, and possibly China, to spur growth.
The company will launch innovative and world-class products as part of its goal to become the number one seller of rum in the world.
THI I is the parent company of Tanduay Distillers Inc., the largest rum company in the Philippines and the second largest seller of rum in the world. It owns two of the largest distillery firms in the country — Asian Alcohol in the Visayas and Absolut Distillers in Luzon.