Zobel-led Ayala Corporation has set the initial dividend rate for the ₱20 billion Class B preferred shares it is re-issuing at 6.2903 percent per annum.

In a disclosure to the Philippine Stock Exchange, the conglomerate said it is conducting a Follow-on Public Offering by way of re-issuance from treasury of up to 10 million Class B Preferred Shares at an Offer Price of ₱2,000 per share.

The offering consists of a base offer of five million preferred B shares, with an overallotment option of up to five million shares.

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 its net losses to ₱59 million from ₱191 million in the same period last year, driven by improved utilization of facilities and enhanced 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.

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.”