San Miguel Pure Foods Co. Inc. said Thursday it pegged the dividend rate for the planned five-year P15-billion preferred shares offering at 5.6569 percent per annum.
SMPFC said in a disclosure to the stock exchange it would issue 10 million preferred shares with additional 5 million preferred shares to cover over allotment option to be sold at P1,000 per share.
The food manufacturing company said the dividend rate of 5.5659 percent per annum would only be an initial rate for the preferred shares offering. It said unless it decided to redeem the preferred shares in the fifth year of listing with the stock exchange, it would offer a dividend rate step up.
Under the arrangement, the preferred shares will have a dividend rate based on the 7-year PDST-R2 (Philippine Dealing System Treasury Reference) plus 3.75 percent. Offer period will be from Feb. 16 to March 5 while listing date was set on March 12.
SMPFC hired BPI Capital Corp., China Banking Corp., RCBC Capital Corp., SB Capital Investment Corp. and Standard Chartered Bank as the joint issue managers, lead underwriters and book runners for the offering.