Industry leader Petron Corporation (PCOR) has raised P14 billion from its offering of preferred shares which were listed today, July 7, at the Philippine Stock Exchange (PSE).
Petron and PSE management during the official listing ceremony on July 7 (from left) Petron General Counsel, Corporate Secretary and Compliance Officer Atty. Jhoanna Jasmine Elacio; Petron Vice President and Controller Myrna Geronimo; Petron Deputy CFO and Treasurer Albert Sarte; Petron SVP and CFO Emmanuel Eraña; Petron General Manager Lubin Nepomuceno; PSE President and CEO Ramon Monzon; Members of the PSE Management Committee Attys. Roel Refran, Marigel Garcia; Veronica Del Rosario, and Securities Clearing Corporation of the Philippines (SCCP) COO Renee Rubio
In a disclosure to the Philippine Stock Exchange, the firm said the initial base offer of P12.5 billion was oversubscribed by P1.5 billion affirming the positive and continued support of institutional and retail investors for Petron.
Dividend rates per annum on the preferred shares are: 6.7079 percent p.a. for Series 4A, 6.7972 percent p.a. for Series 4B, and 7.0861 percent p.a. for Series 4C. The company’s preferred shares were publicly offered from June 15 to June 27, 2023.
“We’re grateful and at the same time, humbled by the strong response of the investment community. Results such as this move us to pursue projects that will ensure our growth and sustainability in the long haul,” said Petron President and CEO Ramon S. Ang.
In an earlier disclosure, the company announced that the amount raised will be used to redeem Petron’s Senior Perpetual Capital Securities issued in 2018.
Petron partnered with China Bank Capital Corporation as sole issue manager, and Bank of Commerce, China Bank Capital Corporation, Philippine Commercial Capital, Inc., PNB Capital and Investment Corporation, and SB Capital Investment Corporation as joint lead underwriters and joint bookrunners.
It also partnered with First Metro Investment Corporation to be its selling agent.
Last June, the Securities and Exchange Commission (SEC) approved the shelf registration by Petron of up to 50 million Series 4 preferred shares worth P50 billion.
Petron may offer the preferred shares in several tranches within a period of three years. For the first tranche, the company offered 12.5 million preferred shares at an issue price of P1,000 each, with an oversubscription option of 10 million preferred shares.