San Miguel Corp. has raised P30 billion through a follow-on offering of preferred shares, which were listed on the Philippine Stock Exchange (PSE) on Monday. The new shares trade under the ticker symbols SMC2V, SMC2W, and SMC2X.
PSE president and chief executive Ramon S. Monzon praised the conglomerate for the successful sale, noting it is the largest amount raised from a follow-on offering in the local market in seven years. “SMC has raised the most capital from follow-on offerings since 2020. Including the shares listed today, SMC has raised a total of P146.65 billion from 11 preferred share subseries across five separate offers,” Monzon said. He added that the company could well be called the “stock market champion” for fundraising, pointing out that this latest offering was 3.27 times oversubscribed due to strong investor demand.
The three new share classes carry fixed annual dividend rates: 8.0401 percent for SMC2V, 8.3570 percent for SMC2W, and 8.6483 percent for SMC2X.
Up to P5 billion of the total proceeds will be invested in the company’s infrastructure business within one year, mainly to fund the New Manila International Airport and related aerotropolis projects in Bulakan, Bulacan. Most of the capital will be used to manage debt. If the full oversubscription option is exercised, P6.31 billion will go toward paying down P6.62 billion in short-term loans from BDO Unibank. These include a P5.17 billion facility due in June and a P1.45 billion loan used earlier to redeem older preferred shares.
From the base P20 billion offer, up to P6.02 billion will settle Series C bonds due March 2027, while P13.81 billion will go toward Series J bonds maturing the same month. If oversubscription is fully used, the amount for Series J bonds will drop to P7.44 billion.
Bank of Commerce, BDO Capital and Investment Corp., and China Bank Capital Corp. served as joint issue managers. Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. acted as joint lead underwriters and bookrunners.
