SM Prime Holdings Inc. is paving the way for a fresh funding channel after its board of directors approved the reclassification of 100 million unissued common shares into 100 million preferred shares, a move designed to broaden its capital-raising flexibility and attract a wider investor base.
The reclassified shares will retain a par value of P1.00 each. The proposal also includes an amendment to the Seventh Article of the company’s Articles of Incorporation, granting the Board authority to set the terms of future preferred share issuances.
This covers key details such as the number of tranches, offer price, timing, and other conditions of the offering.
The measure will be presented to shareholders for approval during the company’s Annual Shareholders’ Meeting scheduled for April 28.
SM Prime, the flagship property development arm of the SM Group, said the planned preferred share issuance will diversify its funding sources and expand its investor profile. Preferred shares are typically structured to provide fixed dividends and priority over common shares in the event of liquidation, making them attractive to income-focused investors.
The move signals a proactive approach to capital management as the property giant continues to expand its portfolio of malls, residential developments, offices, and hospitality projects.
By adding preferred shares to its funding toolkit, SM Prime positions itself to tap both institutional and retail demand while preserving balance sheet flexibility.
The final structure and launch timeline of any preferred share offering will depend on market conditions and shareholder approval.
