UBS cites large stock market deals

An article published in the Philippine Daily Inquirer, September 30, 2006
 

APPETITE for stock market investments has been growing, as shown in successful large offers this year, UBS Investment Bank said Friday.

Equity deals handled by UBS this year for a number of blue-chip companies raised $765 million as compared with $290 million last year, reflecting investors' optimism on stronger signs of economic health, UBS AG chief representative Lauro Baja III said in a briefing.

UBS this year handled capital-raising activities for the following: First Gen Corp., which made an initial public offering (IPO) of stock ($180 million); Universal Robina Corp. which sold additional shares to increase its public float ($240 million); Megaworld Corp., which sold additional shares ($122 million); and Robinsons Land Corp., which sold additional shares ($223 million).

Last year, UBS handled two major equity deals: the IPO of Manila Water Co. Inc. ($90 million) and an exchange of bonds for First Pacific Co. for shares of Philippine Long Distance Telephone Co. ($200 million).

“Investors have been riding on good momentum from the Philippines' macroeconomic story,” said Robrina Go, UBS Securities Philippines Inc. country head and head of equities.

Based on its recent equity deal for Robinsons Land, Baja said close to 60 institutional investors bought up Robinsons Land's shares, with the bulk coming from the United States and Asia.

“Investors liked Robinsons Land because of the bullish sentiment on the country,” Baja said.

“Everyone liked the fact that overseas Filipino workers continue to provide a source of comfort for the economy. From the business process outsourcing angle, they like that the growth is spectacular and that we are providing a good alternative to India.”

Then there's “the property boom,” Baja said. Investments in the Robinsons Land shares reached nearly $450 million, over 2.4 times the offer, he said.

Philippine Stock Exchange data showed that from January to August, publicly listed companies raised P31.5 billion in capital through IPOs, sales of additional shares, and stock rights offering,.

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