Petron successfully lists P20 billion worth of preferred shares
PETRON Corp. successfully listed P20 billion worth of preferred shares on the Philippine Stock Exchange yesterday.
The oil refining and marketing company said in a statement Tuesday the offer represents the base of P15 billion and the oversubscription of P5 billion, which reflects a “strong response of the institutional investors and trading participants.”
“The success of this fundraising exercise highlights our position as the leading oil player and as a viable investment option... We remain committed to fueling economic growth and to bringing greater value to our shareholders,” Petron President and Chief Executive Officer Ramon S. Ang said in the statement.
Petron noted this was the company’s biggest preferred shares offering in history.
Stockholders that subscribed to the offering will receive dividends per annum based on a 6.8713% rate for those under Series 3A preferred shares, and 7.1383% rate for those under Series 3B preferred shares.
The Series 3A preferred shares are redeemable 5.5 years from the date of the issuance, while Series 3B preferred shares are redeemed after seven years.
Petron earlier said a portion of the proceeds from the listing will be used to redeem the company’s outstanding Series 2A preferred shares which were issued in 2014. The remainder will be used to repay outstanding short-term debt and for general corporate purposes.
The company tapped BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital Corp. and PNB Capital and Investment Corp. as joint issue managers, joint lead underwriters and joint bookrunners for the listing. First Metro Investment Corp. was the co-lead underwriter.
In the first quarter, Petron saw its attributable net income fall 80% to P1.11 billion, brought by a 4% drop in revenues.
It is investing more than $1 billion to expand its presence in the country this year. One of its projects is the construction of two stream boilers in its refinery in Limay town, Bataan. —