SM Investments Corp., the holding company of Philippine billionaire Henry Sy, slid the most in six weeks in Manila equity trading after it sold $150 million worth of shares at a discount.
SM Investments shares fell 5.4 percent to 910 pesos at 10:56 a.m. local time, heading for the sharpest loss since June 20. The stock was the biggest contributor to a loss in the Philippine Stock Exchange Index (PCOMP), which fell 0.4 percent.
The Manila-based company sold 7.25 million shares to institutional investors at a placement price of 900 pesos each, according to a term sheet. That’s a 10 percent discount to yesterday’s closing price.
“The weakness in the share price is a reflection of the discount and the expanded float in relation to the share sale,” said Astro del Castillo, managing director at First Grade Finance Inc. in Manila.
SM Investments said it sold more shares than planned because of “strong demand.” The company initially sought to raise $100 million, according to a term sheet obtained by Bloomberg yesterday.
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