SM Investments Sinks After Discounted Share Sale: Manila MoverIan Sayson
SM Investments Corp., the holding company of Philippine billionaire Henry Sy, slid the most in almost five year in Manila equity trading after it sold $150 million worth of shares at a discount.
SM Investments shares sank 8.6 percent to 879 pesos at the 3:30 p.m. close of trading in Manila, the sharpest loss since October 2008. The stock was the biggest contributor to a loss in the Philippine Stock Exchange Index, which fell 1.9 percent to a three-week low.
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. The stock closed yesterday at 961.50 pesos a share.
“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.