MANILA, Philippines — Petron Corp. of tycoon Ramon Ang has set the initial dividend rate for its planned follow-on offering of up to P17 billion worth of preferred shares.
The oil giant told the Philippine Stock Exchange (PSE) that the Series 4D and 4E preferred shares would carry an annual payout rate of 6.8364 percent and 7.1032 percent, respectively.
“The initial dividend rates were reasonably priced based on institutional feedback from the bookbuilding exercise,” Juan Paolo Colet of China Bank Capital Corp. told The STAR.
Amid rate-cut hopes in the next 16 months, Colet said investors are “seeking to lock in attractive yields from a quality issuer like Petron.”
The PSE earlier cleared the company’s fundraising activity, which consists of a base offering of 13 million shares and an oversubscription option of up to four million shares at a price of P1,000 apiece.
The share sale represents the second tranche of Petron’s shelf registration of up to 50 million preferred shares.
The offer period will run from Sept. 5 to 13, with the listing of offer shares targeted on Sept. 23.
The proceeds will be used to redeem Petron’s Series 3A preferred shares, refinance maturing obligations and fund general corporate purposes, including the purchase of crude oil inventory.
BDO Capital & Investment Corp. will act as the sole issue manager, with BDO Capital, Bank of Commerce, China Bank Capital, Philippine Commercial Capital Inc., PNB Capital & Investment Corp. and SB Capital Investment Corp. as the joint lead underwriters and bookrunners.