San Miguel completes P80-B fund raising
By Doris DumlaoPhilippine Daily Inquirer
MANILA, Philippines—San Miguel Corp. has completed a landmark P80-billion capital-raising activity after a month-long sale of preferred shares that targeted retail investors seeking higher yields in a low-interest rate environment.
SMC has also obtained authority from the Securities and Exchange Commission to beef up its capital stock, thus paving the way for the issuance of a new series of preferred shares that were already sold to the retail market.
In view of the SEC’s approval of SMC’s charter amendment to create series 2 preferred shares, SMC told the Philippine Stock Exchange that all subscribers to the offering have become stockholders of record as of September 21.
HSBC, the lead arranger of the offering, also remitted Friday the P80 billion raised from the offering of SMC’s preferred shares, banking sources confirmed to the Inquirer.
Fifty-five percent of investors bought SMC’s preferred series 2A that carries a 7.5-percent annual dividend rate and a step-up rate in five years (redeemable starting the third year). About 30 percent veered toward the 8-percent a year sub-series with a step-up rate after 10 years (redeemable starting the 7th year) while the rest went to the sub-series with a step-up rate after seven years (redeemable starting the fifth year). SMC was able to complete the offering.
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Tags: Business , Food and Beverage , San Miguel Corp. , stocks
