Petron raises P16.8B from sale of preferred shares

| PHOTO: Official website of Petron Corp.

The latest preferred share offering of Petron Corp. was well-received by investors, allowing the listed oil company to raise P16.83 billion.

The country’s only oil refiner backed by tycoon Ramon S. Ang disclosed the completion of the offering in a disclosure to the local bourse Tuesday.

Earlier, Petron said the fresh funds would be used to redeem the company’s series 3A preferred shares, refinance maturing obligations and fund general corporate purposes, including the purchase of crude oil inventory.

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The offering covered up to 13 million series 4 preferred shares, valued at P1,000 per share. Petron also had an oversubscription option of up to 4 million shares.

Breaking down the funding deal, the company said it had sold P8.5 billion worth of series 4D shares and P8.33 billion worth of series 4E shares. Petron said the series 4D and series 4E shares would carry an annual payout rate of 6.8364 percent and 7.1032 percent, respectively.

The shares were offered from Sept. 5 to Sept. 13, and will be listed on the Philippine Stock Exchange on Sept. 23.

The sale represents the second tranche of Petron’s shelf program covering 50 million shares.

BDO Capital and Investment Corp. served as the sole issue manager for the offer. It is also the joint lead underwriter and bookrunner alongside Bank of Commerce, China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp. and SB Capital Investment Corp. INQ