San Miguel Corporation (SMC) has initiated a preferred share sale aiming to generate up to ₱30 billion in new capital to fund its massive infrastructure pipeline and settle upcoming financial obligations.
According to its filing with the Philippine Stock Exchange, the diversified giant is rolling out an initial 266.67 million Series 2 Preferred Shares at a price of ₱75 per share. To accommodate robust investor interest, the conglomerate has integrated an oversubscription option to issue up to an additional 133.33 million shares.
Following regulatory clearance from the Securities and Exchange Commission on July 14, the offer window opened on July 15 and is slated to close on July 23. The shares are scheduled for their official listing on the local exchange on August 3.
Reflecting high interest rates and current market dynamics, the Ramon S. Ang-led firm established the indicative dividend rates across three separate tranches: 8.0401% for Series 2-V, 8.357% for Series 2-W, and 8.6483% for Series 2-X.
This capital campaign aligns with SMC’s aggressive capital expenditure program across its multi-industry portfolio. Within the next year, the company plans to inject up to ₱5 billion from the fundraising proceeds directly into its infrastructure division.
A major slice of this capital will back the construction of the New Manila International Airport and its adjacent aerotropolis city in Bulacan, which stands as one of the nation’s most ambitious infrastructure undertakings.
In addition to driving growth projects, the share sale will fortify San Miguel’s financial position by refinancing its debts. Should the oversubscription option be fully exercised, roughly ₱6.31 billion will be used to clear short-term liabilities with BDO Unibank Inc., which includes a ₱5.17-billion credit line secured in May alongside a separate ₱1.45-billion loan that came due in June.
Conversely, capital from the base offering is designated to cover up to ₱6.02 billion for Series C bonds that hold a 5.7613% coupon rate maturing in March 2027. Another ₱13.81 billion is set aside to redeem Series J bonds due in the same month, a figure that could scale up to ₱17.44 billion if the extra shares are completely sold out.
SMC noted that any remaining financial needs will be covered via internal cash generation. Until the funds are actively deployed, the net proceeds will reside in liquid, short-term financial instruments.
The transaction is being orchestrated by Bank of Commerce, BDO Capital & Investment Corporation, and China Bank Capital Corporation as joint issue managers, supported by a consortium of local banks serving as lead underwriters and bookrunners.