The Securities and Exchange Commission (SEC) has approved the registration of San Miguel Corp.'s (SMC) follow-on offering of preferred shares worth up to P30 billion.
In a meeting held on July 7, the SEC Commission En Banc declared effective SMC's registration statement covering 400 million Series 2 preferred shares, subject to the company's compliance with remaining regulatory requirements.
The offering includes a base tranche of 266.67 million preferred shares and an oversubscription option of up to 133.33 million additional preferred shares, priced at P75 each and issued in three subseries: Series 2-V, Series 2-W, and Series 2-X.
If the oversubscription option is fully exercised, SMC expects to raise net proceeds of up to P29.77 billion, which will be used to partly refinance short-term borrowings and repay bonds maturing in 2027.
Part of the proceeds will also fund investments in infrastructure projects, including the Manila International Airport and related airport developments in Bulakan, Bulacan.
SMC has appointed Bank of Commerce, BDO Capital & Investment Corp., and China Bank Capital Corp. as joint issue managers, joint lead underwriters, and bookrunners, along with other participating banks.
The Philippine Stock Exchange (PSE) expects companies to raise about P204 billion through the capital market this year, exceeding its initial target of P170 billion.
SMC's preferred share offering is among the transactions in the PSE's capital-raising pipeline for 2026, and shares of SMC fell 1.04%, or 70 centavos, to close at P66.55 on Wednesday.
