Petron Corp., the country’s largest oil company and a unit of San Miguel Corp., has secured regulatory approval for its plan to raise as much as P17 billion from the sale of Series 3D and 4D preferred shares.
Petron, which also operates in Malaysia, said the Securities and Exchange Commission granted it permission to offer 17 million Series 3D and 4D preferred shares, including the 4 million preferred stocks set aside to cover potential excess demand.
The Series 3D and 4D are part of the 50 million preferred shares that were registered last year by Petron with SEC.
Net proceeds of the preferred shares issuance will be used to redeem Petron’s series 3A preferred shares, refinancing maturing debts, and fund other expenditures, including acquiring crude oil inventory. Petron has a total P13.4 billion of Series 3A preferred shares are outstanding.
The oil company will offer the preferred shares at P1,000 each.
The dividend rate for Series 4D preferred shares was set at 6.8364 percent while that for Series 4E was set at 7.1032 percent.
The preferred shares will be offered from September 5 through 13 and will be listed on the Philippine Stock Exchange on September 23.
