Diversified conglomerate San Miguel Corporation (SMC) is planning to raise a yet undetermined amount of fresh capital through the issuance of its common and preferred shares.
In a disclosure to the Philippine Stock Exchange (PSE), the firm said its Board of Directors has approved the amendment of SMC’s Articles of Incorporation to reclassify 904.75 million common shares currently held as treasury shares into Series 2 preferred shares.
Also approved was the amendment of SMC’s authorized capital stock from P30 billion consisting of six billion shares with a par value of P5 per share divided into 3.79 billion common shares and 2.21 billion Series 2 preferred shares to 2.89 billion common shares and 3.11 billion Series 2 preferred shares.
The SMC board then approved the issuance of the company’s common share Series 2 preferred shares subject to such terms and conditions determined by management, with the approval and conformity of the Board of Directors and Stockholders.
SMC last issued preferred shares via a follow-on offering in November 2023 to raise P34 billion. It formally listed its Series 2-L, 2-N and 2-O preferred shares through a bell ringing ceremony held last Dec. 1, 2023.
PSE President and CEO Ramon S. Monzon commended SMC for its decision to tap the equities market at a time when most companies have deferred their capital raising plans.
“SMC’s FOO was a resounding success. Not only were the base shares fully taken up, but part of the oversubscription option was likewise availed of by savvy investors,” said Monzon.
He noted that “clearly, this is an affirmation of the market’s trust and confidence in the company’s proven track record and the visionary leadership of the company’s President and CEO, Mr. Ramon S. Ang, and his capable management team.”
SMC had registered P65 billion worth of preferred shares with the Securities and Exchange Commission and slated a follow-on offering for up to P30 billion in November to pay debt and fund its massive airport project.
The SEC approved SMC’s Registration Statement and Prospectus for the Shelf Registration of up to 866.67 million Series 2 Preferred Shares to be offered within a period of three years.
It also approved the offer supplement for the public offering of 400 million Series 2 preferred shares with an oversubscription option of up to 266.67 million Series 2 preferred shares.
The offer shares were issued in three subseries: Series 2-L, Series 2-N, and Series 2-O, at an offer price of P75.00 per share. The offer shares were issued from the Series 2 Preferred Shares currently held in treasury of the company.
The first tranche consisted of P30 billion firm offer shares and an oversubscription of up to P20 billion.