SMC lists ₱30 billion preferred shares (from left): SMC Capital Markets Group Manager Rodolfo Emmanuel I. Macalindong, SMC Assistant Corporate Secretary Mary Rose S. Tan, SMC Vice President for International Treasury and Funds Management Group Almira C. Dalusung, SMC and PSE Director Cecile L. Ang, SMC Director, Deputy CFO and Treasurer Joseph N. Pineda, PSE President and CEO Ramon S. Monzon, PSE COO Atty. Roel A. Refran, PSE Issuer Regulation Division Head Atty. Marigel M. Baniqued-Garcia, PSE Corporate Secretary Atty. Aissa V. Encarnacion, PSE General Counsel Atty. Veronica V. Del Rosario, and PSE Capital Markets Development Division Head Mark Frederick V. Visda.

Diversified conglomerate San Miguel Corp. (SMC) listed ₱30 billion worth of preferred shares on the Philippine Stock Exchange (PSE) on Monday, Aug. 3, following a successful follow-on offering (FOO).

PSE President and Chief Executive Officer (CEO) Ramon S. Monzon commended SMC for its successful preferred share issuance and for raising the largest amount from FOOs in the past seven years.

“SMC has raised the most capital from follow-on offerings in the market since 2020. Including the shares to be listed today, SMC has raised a total of ₱146.65 billion from the issuance of 11 preferred share subseries spanning five FOOs,” he noted.

Monzon added, “With a track record like that, SMC might as well stand for stock market champion—at least in terms of fundraising. Further cementing this title is the market’s consistent overwhelming demand for SMC’s preferred shares; this specific offering alone was oversubscribed by 3.27 times.”

SMC listed its Series 2V, 2W, and 2X preferred shares on the PSE under the ticker symbols SMC2V, SMC2W, and SMC2X. SMC2V, SMC2W, and SMC2X carry dividend rates of 8.0401 percent, 8.357 percent, and 8.6483 percent, respectively.

The FOO consisted of a base offer of 266.67 million shares with an oversubscription option of up to 133.33 million shares at ₱75 per share.

The funds were raised as SMC manages a heavy capital expenditure (capex) cycle, led by its massive airport developments. The company earmarked up to ₱5 billion of the proceeds for an equity infusion into its infrastructure arm within 12 months of the issuance.

The capital will primarily fund the New Manila International Airport (NMIA) and the surrounding aerotropolis infrastructure projects in Bulakan town, Bulacan province, just north of Metro Manila.

The bulk of the capital, however, will be deployed toward debt management. If the oversubscription option is fully exercised, SMC will allocate ₱6.31 billion to pare down short-term loans with Sy-led BDO Unibank Inc. totaling ₱6.62 billion.

This includes a ₱5.17-billion facility drawn on May 25, 2026, and due on June 29, 2027, alongside a ₱1.45-billion loan maturing on June 3, 2027, which was originally used to redeem Series 2-I preferred shares.

From the ₱20-billion base offer, the conglomerate will utilize up to ₱6.02 billion to settle its 10-year, 5.7613-percent Series C bonds maturing in March 2027. Another ₱13.81 billion from the base portion—rising to ₱17.44 billion if the oversubscription option is exercised—is designated to retire its five-year, 5.2704-percent Series J bonds, which also mature in March 2027.

Any funding shortfall will be covered by SMC’s internal cash generation. Prior to disbursement, the net proceeds will be held in short-term liquid instruments. - James A. Loyola