Ayala Corporation has firmed up plans to raise up to P15 billion from an offering of Preferred B shares with the filing of applications with the Securities and Exchange Commission and the Philippine Stock Exchange.
In a disclosure to the PSE, the country’s oldest conglomerate said it has simultaneously submitted a Registration Statement with respect to the Offer Shares with the SEC and the corresponding Application for Listing of Stocks with the PSE.
“The Registration Statement and Application for Listing are subject to the review of the relevant regulatory body and compliance with their corresponding requirements,” the firm said.
Ayala’s proposed offer and re-issuance of Preferred “B” Shares consist of a base amount of P10.0 billion with an oversubscription option of up to P5.0 billion.
The Zobel-led conglomerate is raising its capital expenditure budget by 14 percent to P284 billion this year from P249 billion in 2023 as it is confident of surpassing last year’s record financial performance.
Ayala President and CEO Cezar P. Consing said, “2023 was a reasonably good year for us in aggregate. That's our new high watermark in terms of net income. It exceeded pre-COVID. It was up on the year before.”
“This year, that momentum, at least what we're seeing right now, is pretty good. And we're seeing it more evenly distributed across our many businesses… This year, I think you're going to see more of our businesses begin to show real positive events.”
Ayala Chief Finance Officer Alberto M. de Larrazabal said the bulk of this year’s capex will be spent on the expansion of Ayala Land Inc. and ACEN Corporation.
ALI raised its capex budget by 14 percent to P100 billion this year, while ACEN has increased its allotment by about 40 percent to P72 billion.
On the other hand, other subsidiaries are reducing their capex, particularly Globe Telecom which has budgeted P55 billion, a five-year low as it has already scaled up its facilities in recent years.
For the parent company, including funding for the group’s portfolio investments, Ayala has allotted capital expenditures of P13 billion for 2023.
Ayala Corporation is bullish on the potential of ACMobility (formerly AC Motors) to support the inevitable EV transition in the country.
ACMobility CEO Jaime Alfonso Zobel de Ayala reiterated the company's goal of pioneering the first EV ecosystem, a key step to supporting the country’s EV transition.
"In the short term, our focus is to set up the local EV ecosystem by bringing in a compelling line-up of four-wheel EVs as well as by widening the charging infrastructure, store footprint, and our internal capabilities," he said.
Zobel added that, "We recognize that the shift towards clean technology will take time to materialize. Thus, our focus today is to enable that transition."