THE combined food and beverage arm of conglomerate San Miguel Corp. will raise P141.8 billion in proceeds from its follow-on offering.
In its filing to the Securities and Exchange Commission, San Miguel Food and Beverage Inc. (SMFB) will sell 1.02 billion common shares at a maximum price of P140 apiece.
Some 887 million common shares were its primary offering and 133.05 million shares as its overallotment option.
The offer shares will come from the ownership of its parent San Miguel and is equivalent to about 20 percent of SMFB.
“All proceeds from the offer will be received by the selling shareholder. We in San Miguel’s FB will not receive any proceeds from this offer. The selling shareholder shall use the entire proceeds for this offer for investments in the San Miguel group,” the company said.
According to its timetable, pricing and allocation of the offer shares will be on October 19, while public offer will be between October 23 and October 29. Listing at the Philippine Stock Exchange will be on November 6.
The move was meant to increase the public float of the company, with the combined three big companies under San Miguel—Pure Foods, Ginebra and San Miguel Brewery.
At the moment, the public float of the three companies was at 4.12 percent, or far below the government-mandated minimum float of 20 percent.
JP Morgan Securities, Morgan Stanley Asia (Singapore) and UBS AG Singapore branch were chosen as joint global coordinators, while BDO Capital and Investment Corp. and BPI Capital Corp. were chosen as the local lead underwriters.
SMFB’s follow-on offering will be the biggest offering for the year so far. Its share price is currently rising from the July 22 close of P70 per share to P92 per share on Thursday.
The company said its income grew 20 percent to P15.4 billion. Consolidated revenues grew 15 percent for the period to P137.4 billion.
San Miguel completed the consolidation of its food and beverage businesses in June. The said figures reflect the consolidated financials on a comparative basis with last year.