Petron is selling 13 million Series 4 preferred shares with an oversubscription option of up to 4 million shares at P1,000 each.
Preferred shares get priority rights
The company previously received clearance to sell as many as 50 million shares under a long-term shelf registration program.
Preferred shares pay fixed dividends and have priority over common shares in asset distribution but typically lack voting rights.
September offer
Based on its offer supplement, dated Aug 28 this year, Petron will announce the final dividend rate on Aug. 30 while the offer period will run from Sept. 5-13. It aims to list the shares on the Philippine Stock Exchange on Sept. 23 this year.
Petron plans to use about P13 billion from the offer proceeds to fully redeem its Series 3A preferred shares, which paid an initial dividend rate of 6.8713 percent, on Dec. 26 this year.
Assuming it sells all of the overallotment shares, Petron will allocate P875 million to refinance loans and P2.63 billion for the purchase of oil and other generate corporate uses.
Major banks onboard
Petron hired several of the country’s biggest banks to distribute the shares.
The sole issue manager and joint lead underwriter, and joint bookrunner is BDO Capital & Investment Corp.
Bank of Commerce, China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp., and SB Capital Investment Corp. were also hired as joint lead underwriters and joint bookrunners.
