Ayala Corp. raises P20 billion from preferred share offer – BusinessWorld Online
LISTED conglomerate Ayala Corp. raised P20 billion from a preferred share offering that was listed on the Philippine Stock Exchange (PSE) on Thursday.
The offering consisted of the re-issuance of five million preferred Class “B” shares, with an overallotment option of up to five million shares, both priced at P2,000 per share.
The preferred shares are payable quarterly with an initial dividend rate of 6.2903% per annum.
“The successful re-issuance and listing amidst global market uncertainties of our preferred Class ‘B’ shares reflects the enduring support of the investing public in both Ayala and the Philippine capital markets,” Ayala President and Chief Executive Officer Cezar P. Consing said in a pre-recorded message during the listing ceremony.
“The Ayala Group accounts for 24% of the total outstanding preferred shares in the domestic market,” he added.
Ayala Corp. will use the proceeds from the offering to repay short-term bank loans, fund general corporate purposes, and finance capital expenditures.
“This issuance underscores the continued ability of Philippine corporate issuers like Ayala Corp. to access capital markets effectively, supporting their growth and optimizing capital despite uncertain and volatile market conditions,” Ayala Corp. Chief Finance Officer Alberto M. de Larrazabal said.
Meanwhile, PSE President and Chief Executive Officer Ramon S. Monzon said during the listing ceremony that Ayala Corp.’s follow-on offering of preferred shares was oversubscribed by 1.87 times.
“This is a testament that offerings will continue to attract capital if the issuer is known and proven to be responsible, relevant, and sustainable, generating not only profit for its shareholders but creating value for all its stakeholders,” he said.
For the first quarter, Ayala Corp. reported a 4% decline in net income to P12.6 billion due to weaker contributions from its power and telecommunications units.
Shares of Ayala Corp. were unchanged at P558 apiece on Thursday. — Revin Mikhael D. Ochave
