Insider Spotlight
The conglomerate raised P30 billion after selling the maximum 400 million preferred shares, including the full over-allotment option, a stock exchange filing showed. The shares will begin trading on Aug. 3 under the symbols SMC2V, SMC2W and SMC2X.
“It was well received and shows retail and institutional investors supportive of SMC,” a deal insider said in a text message.
The deal comes as the local equity market prepares for another wave of blockbuster offerings, including the planned listings of PLDT Inc.’s VITRO Inc. data center real estate investment trust (P24 billion) and GCash (P92 billion).
SMC, the country's biggest conglomerate by revenues, has interests spanning food and beverages, fuel, power, infrastructure, packaging and banking.
Debt refinancing
The preferred shares were priced at P75 each and carry initial annual dividend rates of 8.0401 percent for Series 2V, 8.3570 percent for Series 2W and 8.6483 percent for Series 2X.
Most of the proceeds will be used to refinance existing debt, including redeeming earlier preferred shares and repaying bonds due in 2027, the offering prospectus showed.
Any remaining funds will be invested in airport and other infrastructure-related projects over the next two years.
Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. acted as joint issue managers, lead underwriters and bookrunners. 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. served as lead underwriters and bookrunners.
—Edited by Miguel R. Camus
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
