EEI eyes P4 billion through preferred share issuance

Listed construction firm EEI Corp. is raising P4 billion through a private placement of a new series of preferred shares as it seeks fresh funding for expansion, working capital and debt repayment.

In a disclosure on Wednesday, the construction giant backed by the Yuchengco family said its board of directors approved the issuance of 40 million Preferred Shares Series “E” at a par value of P0.50 each and an offer price of P100 per share, resulting in an aggregate transaction value of P4 billion.

The shares will be subscribed through a private placement.

“The preferred shares shall be cumulative, nonvoting, nonparticipating, nonconvertible, nonreissuable. The preferred shares are perpetual unless EEI exercises its sole option to redeem at year five from the date of issuance,” the company said.

EEI said the proceeds from the fundraising will be used to support its general corporate and working capital requirements, finance recently awarded projects and settle loan obligations.

The company added that the transaction qualifies as an exempt securities offering under Section 10.1(k) of the Securities Regulation Code, meaning it does not require registration with the Securities and Exchange Commission.

Aside from approving the capital raising, EEI’s board also declared a quarterly cash dividend for holders of its Series “C” Preferred Shares.

The dividend will be paid out of the company’s unrestricted retained earnings as of Dec. 31, 2025.

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Shareholders of record as of Aug. 3, will receive a quarterly cash dividend of P1.6875 per share. That is equivalent to an annual dividend rate of 6.75 percent.

The payment is scheduled for Aug. 21. However, should Ninoy Aquino Day remain a special nonworking holiday, the payment will instead be made on the next business day, Aug. 24, in accordance with the terms of the offer.

This latest fundraising sortie gives EEI additional financial flexibility as it pursues newly secured contracts while strengthening its balance sheet through debt reduction.

At the same time, the dividend declaration allows the company to continue delivering returns to holders of its existing preferred shares even as it taps investors for fresh capital.