Ayala gets SEC nod on P20-B preferred share offer

Ayala Corp., the country’s oldest conglomerate, is offering preferred shares to raise funds, mainly for the repayment of bank loans.

MANILA, Philippines — The Securities and Exchange Commission (SEC) has given its go signal for the P20-billion preferred share offer of Ayala Corp.

In a statement on Wednesday, the regulator said its commission en banc had approved the registration statement of Ayala. This covers the reissuance of 5 million preferred B shares. It has an overallotment option of up to 5 million shares in case of high demand.

These will be priced at P2,000 each. Should Ayala fully exercise the overallotment option, it could raise up to P19.86 billion, according to the SEC.

“Proceeds will be used to repay its short-term bank loans, as well as for general corporate purposes and capital expenditures,” the commission said.

The shares will be reissued and listed on the main board of the Philippine Stock Exchange on June 18.