San Miguel files for P30-B preferred share offering
San Miguel Corp. (SMC) is seeking to raise as much as P30 billion from a preferred share sale, with proceeds earmarked for its flagship airport project in Bulacan and the refinancing of maturing debt.
In a disclosure on Monday, the conglomerate said it had submitted to the Securities and Exchange Commission a registration statement and prospectus covering the offer of 266.67 million Series 2 preferred shares valued at P75 each, with an oversubscription option of up to 133.33 million additional shares.
The offer shares will be reissued in three subseries—2-V, 2-W and 2-X—and form part of a proposed issuance of up to P30 billion in Series 2 preferred shares.
SMC also submitted an application to list the shares on the Philippine Stock Exchange.
Infra funds
The company said in its prospectus that funds from the base offer will partly support the development of the New Manila International Airport project in Bulacan.
Up to P5 billion is earmarked for its infrastructure business within a year of the offering. The bulk of the remaining proceeds will be used to refinance existing obligations.
SMC said that it plans to allocate about P13.81 billion to redeem its Series J bonds and P6.02 billion to retire its Series C bonds, both of which mature in March 2027.
Should demand trigger the full oversubscription option, the company said additional proceeds would be directed toward the repayment of short-term bridge loans, including borrowings from BDO Unibank Inc.
According to the prospectus, about P6.31 billion has been earmarked for debt repayment, including a P5.17-billion facility due on June 29, 2026. Any funding gap will be covered through internally generated cash.
The offer period is tentatively scheduled from July 15 to July 23, while the preferred shares are targeted to debut on the local bourse on July 31.
Bank of Commerce, BDO Capital & Investment Corp. and China Bank Capital Corp. are serving as joint issue managers for the transaction.
SMC is one of the country’s largest conglomerates, with businesses spanning food and beverage, power, fuel and oil as well as infrastructure.
