In a stock exchange filing on Friday, Petron Corp. said the Series 4D shares will pay 6.8364 percent while the Series 4E will pay 7.1032 percent per year.
Attractive yields from a quality issuer
Juan Paolo Colet, managing directer at one of the deal arrangers, China Bank Capital, expects the share offer will go well.
"The initial dividend rates were reasonably priced, based on institutional feedback from the bookbuilding exercise," he told InsiderPH on Friday.
"Given expectations of rate cuts over the next 16 months, investors are seeking to lock-in attractive yields from a quality issuer like Petron," he added.
Dividends step-up feature
The offer involves 13 million preferred shares valued at P13 billion, with an option to add 4 million shares worth P4 billion. Proceeds will be mainly used to redeem previously issued preferred shares.
There is also a step-up provision for these shares. Based on the offer terms, the dividend rates will increase for Series 4D on the 5th anniversary and for Series 4E on the 7th year after listing unless these are redeemed.
Petron earlier said 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.
