SMC raises P34 billion from preferred share sale

MANILA, Philippines — San Miguel Corp, (SMC) has successfully raised P34 billion from the sale of preferred shares.

Philippine Stock Exchange (PSE) president and CEO Ramon Monzon commended SMC for its decision to tap the equities market at a time when most companies have deferred their capital raising plans.

“SMC’s follow-on offering was a resounding success. Not only were the base shares fully taken up, but part of the oversubscription option was likewise availed of by savvy investors. Clearly, this is an affirmation of the market’s trust and confidence in the company’s proven track record and the visionary leadership of the company’s president and CEO Ramon Ang, and his capable management team,” Monzon said.

The company sold 453.33 million preferred shares at P75 per share.

SMC has been boosting its war chest for its big-ticket projects including a new international airport in Bulacan. It has shelf registration with the Securities and Exchange Commission of P65 billion worth of preferred shares to be offered over a span of three years.

Proceeds will be used to repay Philippine peso-dominated short-term loan facilities and previously issued bonds, and to invest in airport and airport-related projects.

For the offering, the company has tapped Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. as joint issue managers for the offer, as well as a joint lead underwriter and bookrunner alongside Asia United Bank Corp., BPI Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp., SB Capital Investment Corp., and Union Bank of the Philippines.

SMC is one of the country’s most diversified conglomerates and the largest in terms of revenues with businesses in beer, infrastructure, power, oil, packaging, food and beverage, etc.