Ayala Corp. has priced some 4 million class A preferred shares at P2,500 apiece under a reissuance exercise seen raising at least P20 billion in fresh funds.
“We have been advised that the application to list the shares pursuant to the offer was approved by the Philippine Stock Exchange’s board of directors at its regular meeting held on 3 May 2023 under the PSE’s Notice of Approval dated 3 May 2023,” Ayala said.
The company re-issues the shares as its base offer with another 4 million in over-subscription option. The shares come from those held in treasury.
It placed a dividend yield of 6.3587 percent based on the average five-year bond trading rates from 28 April through 3 May and a spread of 40 basis points.
Ayala earlier planned to issue up to 6 million preferred shares with an oversubscription option of 4 million shares for a total offer size of P25 billion.
In its draft prospectus filed with the Securities and Exchange Commission, Ayala Corp. said the net proceeds will refinance its peso-denominated bonds and short term loans, partially fund its capital expenditures, and its callable preferred “B” shares due 2023.
The use of proceeds was based on the original offer size of P25 billion instead of the current P20 billion.
Ayala Corp. said should net proceeds prove less than the above total, the company will satisfy the balance from internally generated funds and other credit facilities which may include bank borrowings.
