Firms brave bear market to raise funds

Listed companies have decided to push through with their fundraising activities despite a bearish market.

Global Ferronickel Holdings Inc. has set the final offer price for its follow-on offering at P2.07 per share to raise P517.5 million.

The company originally wanted to raise P1 billion from an offering of 250 million common shares.

It has tentatively set the listing date on July 20 after an offer period which will run from July 9 to 13.

Net proceeds from the offering will be used to partially pay its loans and for general working capital purposes to fund the operations of the Cagdianao mine in Surigao del Norte.

The company tapped Abacus Capital and Investments Corp. as the underwriter.

Global Ferronickel, through its unit Platinum Group Metals Corp. (PGMC), is among the country’s largest nickel ore producers in terms of volume of nickel shipped.

It is the largest nickel ore producer in the Philippines by the value of shipment.

Meanwhile, DoubleDragon Properties Corp. has set a July 13 listing date for its follow on offering of up to 150 million common shares. The offer period will run from July 2 to July 6.

DoubleDragon is the property company of Mang Inasal founder Edgar “Injap” Sia and Jollibee chairman Tony Tan Caktiong.

The company plans to issue 150 million common shares at an offer price of P30 to P40 per share including an over-allotment option of up to 15 million common shares to raise P4.5 billion to P6 billion.

Proceeds will be used to fund the company’s expansion plans in line with its goal to hit 1.2 million square meters of prime leasable space by 2020.

DoubleDragon plans to roll-out 100,000 square meters of leasable industrial warehouse space to be located in various parts of Luzon, Visayas and Mindanao as well as increase its hotel room inventory to 5,000.

Yuchengco-owned Rizal Commercial Banking Corp. (RCBC) also commenced its stock rights offering yesterday. It hopes to raise P15 billion from an offering of 535.71 million shares at P28 apiece. Proceeds from the offering will be used to strengthen its capital ratio and fund its business expansion.