The Securities and Exchange Commission (SEC) has greenlit Ayala Corporation’s ₱20 billion preferred share offering, a move expected to bolster the conglomerate’s liquidity while refinancing short-term debt.
The regulator approved Ayala’s registration statement covering the re-issuance of up to 10 million preferred Class B shares—including a base offer of five million shares and an over allotment option for another five million. The shares will be priced at ₱2,000 each, potentially netting the company up to ₱19.86 billion if fully subscribed.
Proceeds from the offering will primarily be used to repay short-term bank loans, with additional allocation for capital expenditures and general corporate purposes. Ayala has tapped BPI Capital Corp., BDO Capital Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital, RCBC Capital, and Security Bank Capital as joint lead underwriters and bookrunners.
The shares are slated for re-issuance and listing on the main board of the Philippine Stock Exchange (PSE) by 18 June, with trading to commence on the same day.
The capital-raising initiative comes as Ayala reported a 4 percent decline in first-quarter attributable income to ₱12.59 billion from ₱13.07 billion year-on-year, alongside an 8 percent drop in revenue to ₱40.15 billion, largely due to weaker performance from Globe Telecom and other units.
Despite the dip, Ayala president and CEO Cezar P. Consing expressed optimism: “We are seeing strong starts from our banking, real estate and fintech businesses… Our smaller, newer companies are turning the corner. We are constructive on the year.”
