Insider Spotlight
“SMC might as well stand for Stock Market Champion, at least in terms of fundraising,” Monzon said during the listing of the conglomerate’s latest P30-billion offering, which was fully subscribed by investors.
He said San Miguel, whose business span food and drinks, energy, fuel refining and infrastructure, has raised P146.65 billion from 11 preferred share sub-series across five follow-on offerings since 2020, the most in the market over the period
“SMC’s continuous growth and strategic expansion are a testament to the visionary leadership of its chairman and CEO, Mr. Ramon S. Ang,” Monzon said.
“I am fully confident that this operational momentum will be sustained under SMC’s capable management team, now led by its president and COO, John Paul L. Ang,” he added.
Largest PSE raise since Maynilad IPO
SMC’s latest preferred share sale was fully subscribed, allowing the conglomerate to raise the full P30 billion after exercising its over-allotment option.
The preferred shares were priced at P75 each and carried initial annual dividend rates of 8.0401 percent for Series 2V, 8.3570 percent for Series 2W and 8.6483 percent for Series 2X.
The deal was the biggest equity fundraising on the Philippine Stock Exchange since the Maynilad Water Services Inc. initial public offering, which raised about P34 billion.
Deal makers’ corner
“It was well received and shows retail and institutional investors are supportive of SMC,” said Eduardo Francisco, president of BDO Capital & Investment Corp.
“The latest issuance garnered strong demand across both institutional and retail segments, resulting in a fully subscribed offering including the overallotment tranche,” said Juan Paolo Colet, managing director of China Bank Capital.
“The positive sentiment carried over to the secondary market, with the shares trading at a premium at the opening bell, highlighting the market’s favorable view of the issue and the company,” he added.
The syndicate also included Bank of Commerce, BPI Capital Corp., Land Bank of the Philippines, Philippine Commercial Capital Inc., PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp.
Debt and airport funding
Most of the proceeds will be used to refinance short-term loans tied to the redemption of earlier preferred shares and repay bonds maturing in 2027.
The balance will support the New Manila International Airport in Bulacan and other infrastructure projects over the next two years.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
