The Cebu-based fuel trader sold all 10 million preferred shares in its base offer and exercised a 5 million-share over-allotment option, lifting the final issue size to 15 million shares ahead of its June 26 listing.
The offer carried dividend rates of 9.1325 percent for the Series A-1 shares and 9.5981 percent for the Series A-2 shares, making it one of the highest-yielding preferred share offerings in the market this year.
Funding expansion
Proceeds will be used to finance depot construction and upgrades, expand fuel logistics infrastructure and support working capital requirements.
The company is betting that larger storage capacity and a stronger distribution network will help capture higher trading volumes and strengthen its position in the increasingly competitive downstream oil market.
Platform for future fundraising
The fundraising marks the first drawdown under the company’s P15 billion shelf registration program, providing a platform for future capital raising as expansion opportunities emerge.
PNB Capital and Investment Corp. served as sole issue manager and joint bookrunner for the transaction alongside Security Bank Capital Investment Corp., which acted as joint lead underwriter and joint bookrunner.
—Edited by Miguel R. Camus
