BY RCBC SECURITIES
Ayala Land (ALI) is increasing its 2015 capex by 43% to PHP 100 billion from PHP 70 billion in order to meet its 2020 net income target of PHP 40 billion.
The company was able to raise PHP 16 billion from a “top-up” placement it completed last Friday and this would be used to partially finance its 2015 capex.
In its placement, ALI sold 485 million common shares, 3.4% of preplacement outstanding shares, at PHP 33.00 per share. After the transaction, Ayala Corporation’s (AC) stake in ALI common shares was reduced 47.3% from 48.9%.