SEC clears San Miguel’s P30-B follow-on offering

MANILA, Philippines – The Securities and Exchange Commission (SEC) has approved the follow-on offering of up to P30 billion in preferred shares by San Miguel Corp. (SMC), paving the way for one of the largest capital-raising activities in the local market this year.

In a statement on Wednesday, the SEC said its Commission En Banc had resolved during its July 7 meeting to render effective the registration statement covering 400 million Series 2 preferred shares, subject to the conglomerate’s compliance with certain remaining requirements.

READ: San Miguel files for P30-B preferred share offering

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The planned offering consists of a base size of 266,666,600 preferred shares and an oversubscription option of up to 133,333,400 shares. The preferred shares, which will be issued in up to three subseries, will be offered at P75 per share.

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“Assuming the oversubscription option is fully exercised, SMC expects to net up to P29.77 billion from the offer. Proceeds will be used to repay loans and fund airport and infrastructure-related projects,” the SEC said.

To repay loans

According to the SEC, the company will use the funds to repay existing loans and finance airport and infrastructure-related projects.

Based on the timetable submitted to the regulator, the offer period will run July 15 to July 23, while the preferred shares are scheduled to be listed on the main board of the Philippine Stock Exchange on July 31.

SMC appointed Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers.

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Subject to conditions

The three institutions will also serve as joint lead underwriters and bookrunners alongside BPI Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital and Investment Corp. and Security Bank Capital Investment Corp.

READ: San Miguel aims to raise P30B from preferred share offer

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The regulatory approval allows SMC to proceed with the offering, subject to the remaining conditions set by the SEC.

The fund-raising exercise is expected to support the conglomerate’s balance sheet by refinancing debt while providing fresh capital for its ongoing infrastructure expansion, particularly its airport-related projects. INQ

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