The Securities and Exchange Commission (SEC) has approved Petron Corp.’s planned issuance of P50 billion worth of preferred shares.
In a statement, the SEC said it approved Petron’s shelf registration of up to 50 million Series 4 preferred shares.
SEC, however, said the approval shall be subject to the company’s compliance with certain remaining requirements.
Petron may offer the preferred shares in one or more tranches within a period of three years.
For the first tranche, Petron will offer 12.5 million preferred shares at P1,000 each, with an oversubscription option of 10 million preferred shares.
The offer period for the first tranche will run from June 14 to 27, with listing of the shares targeted on July 7, based on the latest timetable submitted to the SEC.
The company expects to net P22.34 billion from the offer, assuming the oversubscription option is fully exercised.
Proceeds will be used for the partial redemption of certain securities, debt refinancing, and purchase of crude oil.
The preferred shares will be listed and traded on the main board of the Philippine Stock Exchange (PSE).
Petron tapped China Bank Capital Corporation as the sole issue manager for the offer as well as joint lead underwriter and bookrunner, alongside Bank of Commerce, Philippine Commercial Capital, Inc., PNB Capital and Investment Corp., and SB Capital Investment Corp.
