EEI Corp. secures P6B from preferred share sale
Yuchengco-led construction firm EEI Corp. has returned to the local stock market for the first time in 14 years, raising P6 billion from a warmly received offering of preferred shares.
EEI’s offering of series A and series B preferred shares, which ended on Dec. 15, had been oversubscribed by 4.85 times the base offer of P4 billion, the company told the Philippine Stock Exchange (PSE) on Wednesday.
As such, EEI was able to exercise the oversubscription option and upsize the total offering size to P6 billion.
Series A and series B preferred shares have an initial dividend rate per annum of 5.7641 percent and 6.9394 percent, respectively.
Grateful
The offering marks EEI’s return to the equity capital market since its P540-million stock rights offering in 2007. The preferred shares were listed on the PSE on Wednesday.
“We’re grateful for the public’s faith and trust in our company despite the challenges that we face. This fundraising exercise positions the company to more actively participate in projects that contribute to nation-building,” said Cris Noel Torres, EEI chief financial officer.
Article continues after this advertisementRCBC Capital Corp. acted as sole issue manager. Together with SB Capital Investment Corp., it was also joint lead underwriter and bookrunner.
Article continues after this advertisementStrong demand
“EEI’s preferred shares were oversubscribed with strong demand from institutional and retail investors who want exposure to a major player in the infrastructure development of the country,” said RCBC Capital.
Proceeds are expected to fund EEI’s current and future projects as well as for new equipment. Part of the proceeds will likewise be used to settle existing short-term loans.
EEI earlier said it was planning to hire over 10,000 skilled workers for a bigger pipeline of projects from both the public and private sectors in 2022. The company is in need of carpenters, masons, rebarmen, scaffolders, welders, pipe-fitters, steel workers, engineers, architects, safety, quality control personnel, electricians and civil works supervisors, among others.
