STI eyes P4.5B from follow-on offering

MANILA, Philippines - STI Education Systems Holdings Inc. (formerly JTH Davies) has obtained the Securities and Exchange Commission’s approval to raise as much as P4.5 billion from a follow-on offering of shares.

STI-ESH, the listed vehicle for the education-related assets of businessman Eusebio Tanco, is selling up to three billion shares to foreign and local investors at a maximum price of P1.50 apiece. These shares include the 273 million set aside from over-allotment option in case of strong demand.

Of the total shares, 2.185 billion shares will be sold to foreign investors and 546.44 million to the domestic market.

UBS was appointed as sole international bookrunner and global coordinator. It will also serve as domestic lead manager for the issue alongside First Metro Investment Corp.

The offer price will be determined based on a book-building process.

The shares to be issued will come from an increase in its authorized capital from 1.103 billion shares to 10 billion shares with an aggregate par value of P5 billion.

The follow-on offering is in line with the group’s efforts to comply with the local bourse’s minimum public ownership requirement of 10 percent.

Proceeds from the share sale will be used to fund capital expenditures for 2013-2014, amounting to around P3.92 billion.

STI-ESH is constructing two new campuses in Caloocan and Ortigas-Cainta. It is also looking to acquire properties for new schools planned in Las Piñas, Davao, Cubao and Cagayan de Oro.