LISTED port operator International Container Terminal Services Inc. (ICTSI) said on Thursday it had entered into a placement agreement for the sale of its 40 million treasury shares to raise funds for general corporate purposes.
Proceeds will also be used to fund the company’s committed capital expenditure, ICTSI said in a disclosure to the stock exchange.
“Last night, ICTSI entered into a placement agreement to sell 40 million treasury shares at a price of P117 per share, representing a 3.9% discount to yesterday’s close for a total gross proceeds of P4.68 billion,” it added.
The company said its offering was “well-received and multiple times oversubscribed” by “high-quality” foreign and local institutional investors.
The move comes after the company reduced its capital expenditure plan for 2020 to around $160 million due to the pandemic crisis.
The company said recently it had spent $128.6 million in the first nine months of the year, mainly for its expansion projects at Manila International Container Terminal in Manila, Philippines; Contecon Manzanillo S.A. in Manzanillo, Mexico; Contecon Guayaquil S.A. in Guayaquil, Ecuador; Basra Gateway Terminal in Umm Qsar, Iraq; and ICTSI DR Congo in Matadi, Democratic Republic of Congo.
ICTSI saw its third-quarter net income attributable to equity holders grow by 23% to $69.2 million, after it benefitted from cost preservation measures to mitigate the effects of the pandemic.
It reported a 7% improvement in its gross revenues for the third quarter to $379.3 million.
The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) grew 13% to $226.8 million.
ICTSI shares on Thursday closed 4.11% lower at P116.80 apiece. — Arjay L. Balinbin