Diversified conglomerate San Miguel Corp. is braving the volatile market conditions as it scheduled the sale of P30 billion worth of preferred shares next month.
San Miguel officials disclosed during an investors’ briefing at the Makati Diamond Hotel the offer period would be held on March 7 to 11, or after securing an approval and permit to sell from the Securities and Exchange Commission.
Issue and listing date was set on March 21.
SMC is raising P30 billion to refinance maturing US dollar-denominated obligations amid continued strengthening of the US dollar against the local currency.
San Miguel will offer 280 million shares, with an oversubscription of 120 million shares at an offer price of P75 per share.
This forms part of the 975.571 million preferred shares the company registered with the SEC. The unissued preferred shares will be placed under shelf registration and will be issued over the next three years.
San Miguel hired eight banks to handle the transaction. These are BDO Capital and & Investment Corp., China Bank Capital Corp., ING Bank, PNB Capital and Investments Corp., RCBC Capital Corp., SB Capital Investments Corp., Standard Chartered Bank and United Coconut Planters Bank.
The preferred shares will be listed with the Philippine Stock Exchange.
The company had $8.54 billion of dollar-denominated debt as of end-September 2015, representing 47 percent of its P855.8-billion ($18 billion) total liabilities, based on the company’s third-quarter filing.
San Miguel also raised P33.5 billion last year from the issuance of preferred shares at P75 apiece.
That offering was five-times oversubscribed and proceeds partly refinanced P54 billion of similar securities due that month.
San Miguel is one of the largest conglomerates in the Philippines by revenues and total assets, with sales of about 6.2 percent of the Philippine gross domestic product in 2014.
The conglomerate is broadly exposed to the Philippine economy through its diverse range of businesses spanning the beverage, food, packaging, fuel and oil, energy, infrastructure, telecommunication, property and banking industries.
San Miguel said it was well-positioned for significant future growth as established businesses in beverage, food and packaging continued to provide stable cash flow, while new businesses enabled the company to expand its ability to generate higher returns.