SMC, Ayala set for P123-B fund raising


The Securities and Exchange Commission (SEC) on Wednesday approved fund raising applications totaling more that P123 billion by San Miguel Corp. and Ayala Land Inc., under the shelf registration program implemented last year.

During its commission meeting, the SEC en banc approved the P73.16 billion preferred share sale of San Miguel Corp., along with Ayala Land’s proposed P50 billion worth of debt papers.

In the same meeting, the SEC also approved the P1.19 billion initial public offering of Philippine Primark Properties Inc.

Ayala Land and San Miguel availed of the shelf registration program under the 2015 implementing rules and regulation the Securities Regulation Code.

The provision allows securities to be issued in tranches, which may be registered for an offering to be made on a continuous or delayed basis for a period not exceeding three years.

According to their application at the agency, Ayala Land registered some P50 billion worth of debt in the form of commercial papers, homestarter bonds, and fixed rate bonds.

Initially, the country’s second largest property developer will offer P8 billion worth of fixed rate bonds, which will be due and demandable in 2026.

The company, however, did not specify the timetable for the remaining issuances.

Meanwhile, SMC’s approval involved shelf registration of series 2 preferred shares to be offered over a three-year period, amounting to a total of P73.16 billion or 975.57 million shares.

Initially, the conglomerate will issue a total of P30 billion worth or 400 million shares at P75 apiece. Of the amount, some P21 billion will be the principal amount and the rest of the P9 billion will be its over-subscription option.

Proceeds of the preferred share sale will be used to repay the existing dollar-denominated obligations of the firm, and fund its power, infrastructure, and property development initiatives.

Meanwhile, Philippine Primark hopes to raise some P1.9 billion from its initial public offering, setting an initial price of P1.70 a share for the sale of 704.4 million common shares.

Proceeds of Primark’s IPO will be used primarily for the construction of town centers that are already in an advanced stage of business development, according to the company’s application.


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1 Comment

  1. Dear Ms. Katrina Mennen A. Valdez
    How do I get to buy series 2 preferred shares from SMC?
    Thank you,
    Carl Ramirez