The Securities and Exchange Commission (SEC) has approved the shelf registration by Petron Corporation of up to 50 million preferred shares worth P50 billion.
In its meeting on June 1, the Commission En Banc resolved to render effective the registration statement of Petron covering Series 4 preferred shares, subject to the company’s compliance with certain remaining requirements.
Petron may offer the preferred shares in one or more tranches within a period of three years. For the first tranche, the firm may raise up to P22.5 billion.
The listed company will offer 12.5 million preferred shares at an issue price of P1,000 each, with an oversubscription option of 10 million preferred shares.
The company expects to net P22.34 billion from the offer, assuming the oversubscription option is fully exercised. Proceeds will be used for the partial redemption of certain securities, debt refinancing, and purchase of crude oil.
The preferred shares will be listed and traded on the main board of the Philippine Stock Exchange (PSE).
The first tranche is scheduled for public offering from June 14 to 27, with listing on the PSE slated for July 7, based on the latest timetable submitted to the SEC.
Petron has engaged China Bank Capital Corporation as the sole issue manager for the offer as well as a joint lead underwriter and bookrunner, alongside Bank of Commerce, Philippine Commercial Capital, Inc., PNB Capital and Investment Corporation, and SB Capital Investment Corporation.