EEI Corp. said demand for its P6-billion preferred shares sale was oversubscribed.
Tenders for the bond’s initial offer of 40 million shares at P100 apiece was 4.85x oversubscribed, leading for the share sale to be upsized to 60 million, including the 20 million shares covering the oversubscription option. The share sale was sold in two series – Series A (EEIPA) and Series B (EEIPB) preferred shares between December 9-15, 2021. It will be listed today in the Philippine Stock Exchange.
The offering marks the successful return of the company to the equity capital markets since its P540-million stock rights offering in 2007.
“EEI’s Preferred Shares were oversubscribed with strong demand from institutional and retail investors who want exposure to a major player in the infrastructure development of the country” said RCBC Capital Corp., the sole issue manager of the share sale.
RCBC Capital was joined by SB Capital Investment Corp. as joint lead underwriters and bookrunners.
EEIPA and EEIPB have an initial dividend rate per annum of 5.7641 percent for the first 3.5 years and 6.9394 percent for the first 5.5 years, respectively.
EEI said the proceeds will be used to fund its current and future projects and capital expenditures for new equipment.
Other uses for the proceeds of the offer include the repayment of existing short-term loans and funding of general and working capital requirements.
