San Miguel Corp. Completes P30-Billion Follow-On Offering, Largest in Seven Years, with PSE Listing
Key Takeaways
- •The P30-billion preferred share follow-on offering was the largest of its kind in seven years.
- •The offering was oversubscribed by 3.27 times, showing demand exceeded the base size.
- •The listed series trade as SMC2V, SMC2W, and SMC2X with dividend rates of 8.0401%, 8.3570%, and 8.6483%.
- •SMC has raised P146.65 billion across 11 preferred share subseries through five follow-on offerings since 2020.
- •Proceeds will be used for debt refinancing, bond repayment, and partial funding of the New Manila International Airport and related projects.
San Miguel Corp. (SMC), one of the Philippines' largest and most diversified conglomerates with businesses spanning food and beverages, energy, fuel refining, telecommunications, infrastructure, and banking, has completed its P30-billion preferred share follow-on offering — the largest of its kind in seven years — with the listing of its Series 2V, 2W, and 2X preferred shares on the Philippine Stock Exchange (PSE) on Monday.
The three series are trading under the ticker symbols SMC2V, SMC2W, and SMC2X, with respective dividend rates of 8.0401%, 8.3570%, and 8.6483%. Preferred shares typically offer fixed dividend yields and rank ahead of common equity in priority for dividend payments and liquidation proceeds, making them a common instrument for income-oriented investors.
In a statement issued on Monday, the PSE reported that the offering was oversubscribed by 3.27 times, indicating that investor demand substantially exceeded the base offer size.
PSE President and Chief Executive Officer Ramon S. Monzon noted that the transaction represents SMC's fifth preferred share follow-on offering since 2020. Cumulatively, including this latest issuance, the conglomerate has raised P146.65 billion across 11 preferred share subseries spanning five follow-on offerings — making it the largest fundraiser via follow-on offerings in the Philippine market since 2020.
"With a track record like that, SMC might as well stand for Stock Market Champion — at least in terms of fundraising. Further cementing this title is the market's consistent overwhelming demand for SMC's Preferred Shares; this specific offering alone was oversubscribed by 3.27 times," Mr. Monzon said.
SMC had previously stated that proceeds from the offering would be directed toward several purposes: refinancing short-term borrowings that were used to redeem its Series 2-I preferred shares in March; repaying Series C and Series J bonds maturing in March 2027; and partially funding infrastructure investments, including the New Manila International Airport and related airport developments in Bulakan, Bulacan. The New Manila International Airport is among the country's largest private-sector infrastructure projects.
At the local bourse on Monday, SMC shares declined P1.10, or 1.64%, to close at P65.90 apiece. — Alexandria Grace C. Magno