Ayala to voluntary suspend trading of preferred shares

MANILA, Philippines — Ayala Corp. (AC) will implement a voluntary trading suspension on its preferred “B” series 2 shares (APB2R) starting Nov. 14 in line with the redemption of the shares.

The Philippine Stock Exchange (PSE) has approved the request of AC for the voluntary trading suspension of its APB2R shares to ensure the conduct of orderly trading in the market.

“The registrar for our APB2R shares needs to prepare a certified redemption entitlement report and deliver the same to us and our paying agent no later than 9 AM of Nov. 19, 2024 or eight banking days immediately prior to the redemption date,” AC said.

“In view of the foregoing, the record date for the full redemption of the shares is set for Nov. 15, 2024 and the trading suspension on our APB2R shares is intended to start on Nov. 14, 2024 until the re-issuance of the shares,” it said.

Holders of AC’s APB2R shares are reminded by the company of its exercise of the call option on the shares on Nov. 29, 2024, the fifth year anniversary from issue date of the shares.

AC said the shares would be redeemed at the price equal to the issue price of P500 per share plus all accrued and unpaid dividends up until Nov. 29 based on the dividend rate of 4.8214 percent per annum.

It added that the redemption amount comprising of the final dividend or redemption price would be paid in a manner similar to the quarterly dividend payments.

“Those entitled to the APB2R redemption payment are the shareholders who acquired the shares prior to the dividend ex-date, November 14, 2024. They will receive the full redemption amount equal to the issue price plus the accrued and unpaid dividend for the period beginning Aug. 29 to Nov. 29, 2024,” AC said.

AC last month successfully listed P15 billion preferred class “B” shares at the PSE, attracting confidence and strong demand among institutional and retail investors.

The company sold a total of 7.5 million shares, including five million shares constituting the base size of the offer and an oversubscription of 2.5 million shares to address the substantial demand among investors.

The preferred shares were issued at P2,000 apiece and are payable quarterly with an initial dividend rate of 6.0538 percent per annum.

The conglomerate said the issuance provides the company with the flexibility to redeem the outstanding preferred shares issued in 2019.