Conglomerate San Miguel Corp. (SMC) raised some P20 billion from the sale of its series 2-J preferred shares, which were listed at the Philippine Stock Exchange (PSE) on Thursday.
A total of 266.66 million preferred shares were sold to the retail, institutional and trading participants of the PSE, the company said.
Shares were priced at P75 apiece each with a dividend rate of 4.75 percent per annum.
The preferred share issuance is the initial tranche under the conglomerate’s shelf registration of up to 533.33 million series 2 preferred shares with the Securities and Exchange Commission to be sold within a period of three years.
Proceeds of the issuance will be used by the conglomerate for investments in projects of existing businesses, mainly its Bulacan airport and Mass Rail Transit 7.
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.
“We are very happy with the outcome of this offering. There’s a lot of optimism riding on a recovery in 2021 and while there is still some reason for caution, investors are confident enough that we can deliver on our commitment to build back better and pursue projects that are crucial to the recovery and future growth of our country,” San Miguel President and COO Ramon S. Ang said.
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 Corp. acted as joint issue managers, joint underwriters and bookrunners for the preferred share issuance.