Major oil player Petron Corp. said Friday it raised P14 billion from its perpetual preferred shares offering.
It said the initial base offer of P12.5 billion was oversubscribed by P1.5 billion, affirming the positive and continued support of institutional and retail investors for Petron.
“We’re grateful and at the same time, humbled by the strong response of the investment community. Results such as this move us to pursue projects that will ensure our growth and sustainability in the long haul,” said Petron president and chief executive Ramon Ang.
Dividend rates per annum on the preferred shares were at 6.7079 percent for Series 4A, 6.7972 percent for Series 4B and 7.0861 percent for Series 4C.
Petron offered the preferred shares to the public from June 15 to June 27, 2023. It listed the preferred shares at the Philippine Stock Exchange on July 7.
The company said it would use the proceeds to redeem senior perpetual capital securities issued in 2018.
Petron tapped China Bank Capital Corp. as sole issue manager and Bank of Commerce, China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp. and SB Capital Investment Corp. as joint lead underwriters and joint bookrunners.
It also engaged First Metro Investment Corp. as selling agent.
Petron posted a net income of P3.4 billion in the first quarter, slightly lower than its net income of P3.6 billion in the same period in 2022 on higher financing cost, which was partly tempered by the mark-to-market valuation of its commodity hedges.
Petron has a combined refining capacity of 268,000 barrels-per-day from its Bataan and Malaysia refineries and produces a full range of world-class fuels and petrochemicals.
It operates about 50 terminals in the region and has around 2,700 service stations where it retails world-class gasoline and diesel.
