Connect with us

Hi, what are you looking for?

Top Stories

Editor's Pick

Ayala Corp. raises P13 billion from preferred shares offering

AYALA Corp. has raised P13.11 billion from the sale of preferred shares as excess demand prompted the exercise of its oversubscription option on top of the base offer.

In a regulatory filing, the company said that it had sold 4 million shares for P10 billion, which constitutes the base size of the offer, and raised P3.11 billion from around 1.24-million preferred shares through the oversubscription option. The shares were priced at P2,500 each.

The 5.24-million preferred class A shares are set to be reissued on the main board of the Philippine Stock Exchange. Ayala’s class A preferred shares were offered to trading participants from May 8 to 19. They will be available for listing on May 29.

Ayala’s offer shares will be issued from its class A treasury shares. As a result of the listing, about 6.76 million will remain of the company’s treasury shares.

Ayala said proceeds from the offering are intended to refinance its peso-denominated bonds and short-term loans, fund its capital expenditures and partially refinance its callable preferred B shares due 2023.

The diversified conglomerate said that about P10 billion in net proceeds will be used to partially or fully refinance its fixed-rate bonds due on July 7, 2023, with an interest rate of 3.92% per annum, which was issued in 2016.

The company also said that about P4.5 billion will be used to partially repay its short-term loan to the Bank of the Philippine Islands. The proceeds of the short-term loan were used to partially finance Ayala’s participation in the stock rights offering of Globe Telecom, Inc. Any remaining amount from the loan will be paid from internally generated funds, it said.

Additionally, P1.3 billion will be used to finance the company’s capital expenditure for AC Infrastructure Holdings Corp., which will be used to fund AC Infrastructure’s share in Light Rail Manila Corp (LRMC).

LRMC will use the allotment to finance its capital spending related to the contraction of the LRT-1 Cavite extension project, which aims to add five more stations to be completed by early 2025. A portion of the fund will also be used to service the company’s debt.

“Ayala anticipates that AC Infra will later return such equity infusion to it by way of dividends,” it added.

A portion of the proceeds, or about P4.1 billion, will be used to refinance the company’s P10-billion 5.25% series B preferred shares, which are due on Nov. 15, 2023.

The company tapped BPI Capital Corp. as issue manager, it was also tapped as joint lead underwriters and bookrunners. Along with BDO Capital & Investment Corp., China Bank Capital Corp., RCBC Capital Corp., and SB Capital Investment Corp.

Ayala closed 1.14% lower at P691.50 per share. — Adrian H. Halili

You May Also Like

Editor's Pick

THE BOARD of directors of Ayala-led ACEN Corp. has approved the availing of credit facilities amounting to about P7.8 billion from two financial institutions....

Editor's Pick

STOCK PHOTO Image by StockSnap from Pixabay HYDERABAD – When Saloni Singh was little, she would beg then brawl with her brother for a turn on...

Editor's Pick

HOLCIM PHILIPPINES FACEBOOK PAGE LOCAL cement manufacturer Holcim Philippines, Inc. has partnered with South Korean cement and concrete producer Sungshin Cement Co. Ltd. to...

Editor's Pick

MPIC Metro Pacific Investments Corp. (MPIC) reported on Wednesday a consolidated core net income of P4.3 billion in the first quarter, up 38% from...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Secrets Of Richdads. All Rights Reserved.