Oil refiner Petron Corp. said Monday it raised P16.83 billion from its latest preferred shares offering which was listed at the Philippine Stock Exchange on Sept. 23, reflecting strong investor demand.
Petron said in a statement the total amount raised reflected a 1.3-times oversubscription over the P13 billion base offer, leading to an additional oversubscription of P3.83 billion. The numbers underscore the strong demand for Petron’s preferred shares, the company said.
“We thank the investment community for their strong response and continued confidence in our company. Through their support, Petron remains a viable investment option and we are committed to making sure that we continue to grow and succeed, while being a partner in nation-building,” said Petron president and chief executive Ramon Ang.
The company said it would use the proceeds to redeem the Series 3A preferred shares and fund general corporate purposes, among others.
The preferred shares were offered to the public from Sept. 5 to 13. Dividend rates for Series 4D (PRF4D) and 4E (PRF4E) are 6.8364 percent per annum and 7.1032 percent p.a., respectively, and were priced at the low end of the marketing range.
The offer marks the second tranche of the company’s 50 million shelf-registered peso-denominated preferred shares.
Petron worked with BDO Capital & Investment Corp. as its sole issue manager, and together with 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 bookrunners for the offer.
East West Banking Corp., First Metro Investment Corporation, RCBC Capital Corp. and trading participants of the PSE also acted as selling agents.
Petron holds the largest share of the petroleum market, accounting for 23.09 percent in 2023.
