SAN MIGUEL CORP. (SMC) said it has received approval from the Securities and Exchange Commission (SEC) to sell up to 400 million Series 2 preferred shares priced at P75 apiece, with potential gross proceeds of about P30 billion if the oversubscription option is fully exercised.
In a regulatory filing on Monday, the diversified conglomerate said the SEC permit, dated Oct. 10, covers a base offer of 266.7 million shares and an oversubscription option of up to 133.3 million shares, to be issued under three subseries — Series 2-S, 2-T, and 2-U.
The Series 2-S shares will have an initial dividend rate of 6.9650% per annum; Series 2-T, 7.2560% per annum; and Series 2-U, 7.5360% per annum.
This offering marks the second tranche under SMC’s shelf registration, which allows the company to issue up to 866.7 million preferred shares over a five-year period from Nov. 9, 2023 to Nov. 9, 2028.
In its final offer supplement, San Miguel estimated the net proceeds from the sale to reach around P30 billion, assuming full subscription.
The company said it will use the proceeds to refinance short-term loans used to redeem the Series 2-F Preferred Shares, partially redeem the Series 2-J and Series 2-K shares, and invest in infrastructure projects, including the Manila International Airport and related developments in Bulakan, Bulacan, as well as tollway projects.
San Miguel tapped Bank of Commerce, BDO Capital & Investment Corp., and PNB Capital and Investment Corp. as joint issue managers, lead underwriters, and bookrunners.
Other joint lead underwriters and bookrunners include BPI Capital Corp., China Bank Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital, Inc., RCBC Capital Corp., and Security Bank Capital Investment Corp.
At the local bourse on Monday, shares in San Miguel slipped by 15 centavos or 0.26% to close at P56.60 apiece. — A.G.C. Magno