San Miguel Corp readies P50-B preferred shares sale in November | Inquirer Business

San Miguel Corp readies P50-B preferred shares sale in November

/ 02:41 PM September 13, 2023

MANILA  -Tycoon Ramon Ang-led conglomerate San Miguel Corp. is seeking regulatory clearance to sell up to P65 billion in preferred shares over the next three years, with an initial offer worth as much as P50 billion being readied for November this year.

The food, drinks and infrastructure giant is selling shares to strengthen its balance sheet by repaying loans and other obligations while preparing to deploy more capital for its P735-billion New Manila International Airport project in Bulacan.

Preferred shares are an equity instrument which have priority in dividend payments and in the event a company’s assets are liquidated. SMC said the Series 2 preferred shares, which are being offered, will  have limited voting rights.


The deal involves the sale of up to 666.7 million preferred shares—comprising 77 percent of the total shares to be registered—at P75 each.


The base offer size was 400 million plus an oversubscription option for another 266.7 million shares.

SMC, whose businesses include San Miguel beer, power plants, oil refining and toll roads such as the Metro Manila Skyway and South Luzon Expressway, indicated plans to sell the initial batch of preferred shares from Nov. 6-13 this year, the deal prospectus dated Sept. 12 showed.

It is targeting to list the shares on the Philippine Stock Exchange on Nov. 20 this year.

SMC said up to P16.53 billion in gross proceeds will be used to repay peso-denominated short-term loans while up to P17.3 billion will be used to repay its Series B and Series H bonds.

Moreover, it could spend up to P15.8 billion for its international airport project in Bulacan and “other airport related projects”.

SMC tapped Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers for the deal.


The joint lead underwriters and bookrunners are Asia United Bank, Bank of Commerce, BDO Capital, BPI Capital Corp., China Bank Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., and Union Bank of the Philippines.

The initial batch of preferred shares forms part of the long-term registration of 866.67 million preferred shares at P75 apiece. This will be offered over a period of three years, the conglomerate said.

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TAGS: balance sheet, preferred shares offer, San Miguel Corp.

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