In a regulatory filing on Monday, Ayala announced the sale of 5 million preferred class B shares at P2,000 each plus another 2.5 million shares after exercising an option to sell more securities “to address excess demand”.
The shares, paying an initial 6.0538 percent dividend rate, will be listed on the Philippine Stock Exchange on Oct. 15 (Tuesday).
The share offer proceeds will mainly be used to redeem P15 billion worth of Class B preferred shares, which are callable on Nov. 29 this year.
Dealmaker’s view
“We are very pleased with the strong market demand for Ayala's preferred shares offering,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp., said in a text message.
“The issuance was heavily oversubscribed by a good balance of institutional and retail investors who sought a blue chip investment with a fairly high dividend yield. With interest rates expected to trend down, fixed income investors are channeling liquidity to quality names offering premium rates,” he added.
BPI Capital served as the issue manager with joint lead underwriters and bookrunners, including BDO Capital & Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
