SMC rolls out P 50-B preferred share sale | Inquirer Business

SMC rolls out P 50-B preferred share sale

/ 02:10 AM November 13, 2023

Tycoon Ramon Ang-led conglomerate San Miguel Corp. (SMC) launched a P50-billion preferred share sale on Friday, which marks the largest equity offer in the Philippines so far this year.

The food, drink and infrastructure conglomerate will sell up to 666.67 million preferred shares at P75 each from Nov. 10 to Nov. 17 this year, the company said in a deal prospectus.

The shares will then be listed on the Philippine Stock Exchange (PSE) on Dec. 1.


At least 400 million “Series 2” preferred shares will be sold plus an oversubscription option for another 266.67 million shares, the prospectus showed.


Proceeds from the offer will be used to repay Philippine peso-denominated short-term loans and Series B and Series H bonds, which will respectively mature in March and October next year.

Finally, a portion of the proceeds amounting to P15.8 billion could be allocated for its P740-billion airport complex in Bulacan.

“The proceeds from the offer will be utilized by the company through direct or indirect investments in [San Miguel Aerocity] or such other infrastructure subsidiaries of the company as it may deem appropriate in furtherance of the completion of such projects subject to and in compliance with existing laws, rules and regulations,” SMC said in the prospectus.

SMC’s preferred shares will be issued in up to three subseries. It said Series 2-L would pay a dividend rate of 7.9145 percent, Series 2-N will pay 8.3466 percent and Series 2-O will pay 8.5936 percent.

SMC had 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.


SMC’s share sale will add to the roughly P92 billion in capital raising activities recorded by the PSE as of the third quarter of 2023. INQ

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TAGS: Business, PSE, San Miguel Corp. (SMC)

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