Ayala Corp. anticipates generating P15 billion from the re-issuance of 7.5 million perpetual preferred shares under its follow-on offering.
The company is selling 5 million cumulative, non-convertible, non-participating, non-voting, redeemable, peso-denominated perpetual preferred B shares at P2,000 apiece.
It has provided 2.5 million shares as an oversubscription option.
Proceeds from the follow-on offering will fund the redemption of P15 billion worth of class B preferred shares callable on 29 November, the balance of which will be sourced from the company’s internally generated funds.
The offering period runs from 1 to 7 October and tentative listing date of 15 October at the Philippine Stock Exchange.
The company said the shares present an initial dividend rate of 6.0538 percent per annum.
BPI Capital Corp., BDO Capital and Investment Corp., Chinabank Capital Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Corp. have been tapped as joint lead underwriters and bookrunners of the offer while BPI Capital is sole issue manager for the transaction.
In a separate transaction, the company reported raising P2.21 billion from the block sale of 3.07 million treasury shares priced at P720 apiece.
The proceeds from the sale will fund general corporate activities.
Ayala in August reported six-month core profits growing 18 percent to P24.3 attributed to stronger contributions from the Bank of the Philippines Islands, Ayala Land Inc., Globe Telecom Inc., and ACEN Corp.
“Improved earnings from AC Energy and Infrastructure also supported the company’s earnings performance,” the company said.
Ayala Corp. earlier reported raising its capital expenditure budget by 14 percent to P284 billion this year from P249 billion in 2023 on expectations of surpassing last year’s record financial performance.
