The Securities and Exchange Commission (SEC) has approved the planned ₱20 billion offering of re-issued preferred shares by Zobel-led Ayala Corporation.

In its meeting on May 27, the Commission En Banc resolved to render effective the registration statement of Ayala covering the re-issuance of five million preferred B shares, with an overallotment option of up to five million shares, subject to the company’s compliance with certain remaining requirements.

Ayala will offer the preferred shares at P2,000 apiece. Assuming the overallotment option is fully subscribed, the listed conglomerate could net up to P19.86 billion from the offer.

Proceeds of the offering will be used to repay its short-term bank loans as well as for general corporate purposes and capital expenditures.

The offer shares are expected to be re-issued and listed on the Main Board of the Philippine Stock Exchange on June 18, according to the latest timeline submitted to the SEC. Trading is expected to start on the same date.

Ayala has tapped BPI Capital Corporation, BDO Capital Corporation, Chinabank Capital Corporation, First Metro Investment Corporation, PNB Capital and Investment Corporation, RCBC Capital Corporation and Security Bank Capital Investment Corporation as joint lead underwriters and bookrunners for the offer.

The conglomerate recently reported that its smaller and newer businesses have turned around or are reducing losses amid measures being taken to ensure their profitability in about two years.

“Our smaller, newer companies are turning the corner. We are constructive on the year,” Ayala President and CEO Cezar P. Consing said.

For the first quarter of 2025, AC Health narrowed net losses to ₱59 million from ₱191 million in the same period last year, driven by better utilization of facilities and improved margins through prudent cost management, supported by the absence of KonsultaMD losses.

The improved performance was anchored by stronger results from the provider group, which more than offset softness in the pharma segment.

AC Logistics’ core net loss narrowed to ₱303 million from ₱400 million on the back of cost savings and margin uplift from the closures of Entrego and the last mile arm of AIR21.

Similarly, attributable EBIT losses narrowed to ₱153 million from ₱229 million as rationalization initiatives reduced OPEX by ₱500 million.

AC Industrials saw its core net loss narrow to ₱115 million from ₱331 million. Including one-offs, reported net loss narrowed to ₱294 million from ₱932 million.

IMI’s continued turnaround and reduced stake in Merlin Solar more than offset wider losses in ACMobility.

IMI reported a net income of US$3.3 million, a turnaround from the US$3.7 million net loss last year on the back of improved margins and cost savings from the restructuring activities.

ACMobility posted a net loss of ₱168 million from ₱35 million due to marketing and manpower expenses, mainly related to the ramp-up of BYD and its charging infrastructure network.

Ayala Corporation Chairman Jaime Augusto Zobel de Ayala said last month that, “We want to ensure that our emerging business units have a credible path to scale and the ability to achieve good valuation levels. Currently, we're focused on helping our emerging businesses achieve profitability and scale.”