The Philippine Stock Exchange approved the P15-billion preferred shares re-issue of conglomerate Ayala Corp.
Ayala will re-issue 20 million Class B preferred shares with an oversubscription option of up to 10 million Class B preferred shares at a price of P500 apiece.
The initial dividend rate of the preferred shares will be set on Nov. 6 while the offering period is scheduled from Nov. 11 to 22.
The preferred shares will be listed on the Philippine Stock Exchange on Nov 29.
The conglomerate tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp., First Metro Investment Corp. and PNB Capital and Investment Corporation as join lead underwriters of the offering.
The company plans to use the net proceeds from the offering to refinance outstanding credit facilities drawn on November 4, 2019 for the November 5, 2019 redemption of 27,000,000 Class “B” Series 2 Preferred Shares issued on November 5, 2014 and for general corporate purposes.
The conglomerate on Oct. 23 raised $400 million from the issuance of dollar-denominated perpetual bonds with a fixed coupon of 4.850 percent a year.
Net proceeds from the bonds will be used to refinance maturing US dollar-denominated obligations and fund investments.
Ayala’s net income attributable to the parent surged 105 percent to P37.84 billion in the first half of 2019, mainly from the sale of equity investments in the energy and education businesses.
Gross revenues rose two percent to P137.51 billion.
Ayala is one of the largest conglomerates in the Philippines with businesses in real estate, financial services, telecommunications, water, power, industrial technologies, infrastructure, healthcare, education and technology ventures.
Major units include Ayala Land Inc., Bank of the Philippine Islands, Globe Telecom Inc., Manila Water Company Inc., Integrated Micro-Electronic, Inc. and AC Energy, Inc.
