The Philippine Stock Exchange has approved Petron Corp.’s P17- billion preferred shares.
The oil refiner expects to sell to the public an initial 13 billion Series 4 preferred shares and another 4 billion covering the oversubscription option at an offer price of P1,000 apiece. The shares, cumulative, deferrable, non-voting, non-participating, non-convertible, redeemable, and reissuable, will be issued in two sub-series – Series 4D and Series 4F – is the second tranche under the shelf-registered and shelf-listed preferred shares of the company.
The company expects to announced the dividend rate for the two sub-series 4 preferred shares tomorrow.
The share sale will fund the company’s plan to redeem its Series 3A preferred shares, refinance maturing obligations, and fund general corporate purposes, including the purchase of crude oil inventory.
The Series 3A preferred shares worth P13.4 billion, issued in 2019, is due for redemption by December 26. It has an initial dividend rate of 6.8713 percent.
Petron is allocating P875 million out of the proceeds for refinancing obligation, and P2.63 billion for the general corporate purposes as well as fund for acquisition of crude oil inventory.
Petron expects to have the share sale between September 5 and September 13, in time for its listing in the PSE by September 23.
