Conglomerate San Miguel Corporation has launched a P30 billion preferred share offering, with funds set to go toward debt refinancing and key infrastructure projects including the proposed New Manila International Airport in Bulacan. The Securities and Exchange Commission gave approval for the offer the previous Tuesday. The shares will be open for subscription until July 23, with listing on the Philippine Stock Exchange scheduled for August 3.
The issue covers Series 2 Preferred Shares, with a base offer of 266.67 million shares and an option to sell an additional 133.33 million shares to meet excess demand, all priced at P75 each. Dividend rates vary by share class, set at 8.0401 percent for Series 2-V, 8.3570 percent for Series 2-W, and 8.6483 percent for Series 2-X. Up to P5 billion of the total proceeds will be injected into the company’s infrastructure division within a year to support the Bulacan airport and related aerotropolis developments, while the majority of the capital will be used to manage existing debt. If the oversubscription option is fully taken up, P6.31 billion will go toward paying down short-term loans from BDO Unibank, including facilities used to redeem earlier preferred share issues. Funds from the base offer will also cover up to P6.02 billion in Series C bonds maturing in March 2027, with another P13.81 billion from the base portion or P7.44 billion more if oversubscribed allocated to settle Series J bonds due the same month. Bank of Commerce, BDO Capital and Investment Corporation, and China Bank Capital Corporation will serve as joint issue managers, while Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation will act as joint lead underwriters and bookrunners.
