The Securities and Exchange Commission (SEC) has approved Ayala Corp.’s planned P20 billion preferred shares sale.
The share sale covers a re-issue of the company’s preferred B shares at an initial offer of 5 million shares and another 5 million to cover an oversubscription option.
Based on SEC’s approval of the plan on May 17, Ayala plans to offer the preferred shares at P2,000 apiece.
“Assuming the overallotment option is fully subscribed, the listed conglomerate could net up to P19.86 billion from the offer,” the SEC said.
Proceeds will be used to repay its short-term bank loans, as well as for general corporate purposes and capital expenditures.
Ayala targets to have the shares offer done between June 2 and June 6, and listed on the Philippine Stock Exchange by June 18.
Ayala tapped BPI Capital Corp., BDO Capital Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp. as joint lead underwriters and bookrunners for the offer.
Last month, Ayala Corp President Cezar Consing said the group was looking at a P203 billion capital expenditure this year.
