SMC gets go-ahead for P20-B preferred share sale

Conglomerate San Miguel Corp. (SMC) received the government’s go signal to sell up to P20-billion preferred shares to finance upcoming projects, including a massive new international airport city north of Metro Manila.

The Securities and Exchange Commission (SEC) said on Wednesday it approved SMC’s planned offer of up to 266.7-million preferred shares at P75 apiece.

This was part of the company’s three-year registration of up to 533.3 million preferred shares, which typically have no voting rights but give holders priority in dividend payouts.

Because it is a long-term or shelf registration, the balance can be offered at a later date within the three-year period.

SMC has yet to issue a revised offer date for the P20-billion preferred share sale. It had planned to launch the sale before the end of September.

The latest fundraising measure comes as the food, drinks and infrastructure conglomerate plans new projects, including a P735-billion aerotropolis in Bulacan province.

SMC president Ramon Ang earlier said they planned to hold by October this year a groundbreaking ceremony for the airport city, which would have multiple runways and a full capacity of over 100 million passengers annually.

In an earlier prospectus, SMC said it would also use proceeds of the share sale to infuse added equity into subsidiaries.

The P20-billion offer is comprised of 133.33 million preferred shares with an option to double this to 266.7 million in case of strong demand from investors.

It would give the company added resources amid the business downturn triggered by the COVID-19 pandemic. —MIGUEL R. CAMUS