The Securities and Exchange Commission (SEC) has approved the shelf registration of the preferred shares of conglomerate San Miguel Corp. (SMC), which will immediately offer some P20 billion worth of shares.
In its meeting on September 29, the SEC en banc approved the company’s registration statement of up to 533.33 million series 2 preferred shares to be offered within a three-year period.
The company will initially offer 133.33 million in series 2 preferred shares, with an oversubscription option of 133,333,267 at a maximum price of P75 each.
At the said offer price, the company can raise as much as P19.88 billion, proceeds of which will be pumped into its Bulacan Airport Project and MRT-7 Project and for general corporate purposes.
The initial tranche to be issued in one subseries, Series 2-J, will be listed and traded on the Philippine Stock Exchange.
San Miguel has appointed BDO Capital and Investment Corp., BPI Capital Corp., China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. as the joint issue managers, joint lead underwriters, and bookrunners for the offer.
The SEC approval of the shares sale comes on the heels of the House of Representatives’ approval of House Bill 7507 granting San Miguel Aerocity Inc. a franchise to establish the domestic and international airport in the Municipality of Bulakan, and develop an adjacent airport city.
To be built on a 2,400-hectare property in Bulakan, Bulacan, just north of Metro Manila, the $15-billion airport complex will have four runways, eight taxiways and three passenger terminals. It also has provisions for future expansion to sport six runways and to accommodate 200 million passengers per year.
It is also expected to help raise tourism levels to 30 million visitors annually, generate over a million direct and indirect jobs, and contribute roughly P900 billion annually to Philippine GDP by 2025.