SMC raises P48.86b in share swap, offer

Conglomerate San Miguel Corp. (SMC) has raised P48.86 billion through the listing of its maiden preferred exchange offering and a new preferred shares offering at the Philippine Stock Exchange (PSE).

SMC became the country’s first private company to conduct a preferred share exchange offer alongside a public offering.

The conglomerate’s P18.86-billion exchange offer covered Series 2-P, 2-Q and 2-R preferred shares. The program allowed holders of Series 2-J and 2-K preferred shares to swap their investments on a one-for-one basis, receiving a higher dividend instead of waiting for redemption.

A total of 251.47 million shares were tendered under the exchange offer, including 173.76 million Series 2-J and 77.71 million Series 2-K shares. The remaining 92.91 million Series 2-J and 106.19 million Series 2-K shares will be redeemed on Oct. 29 and Dec. 10, 2025, respectively.

At the same time, SMC launched a P30-billion public offering of preferred shares—Series 2-S, 2-T and 2-U—consisting of a P20-billion base offer and a P10-billion oversubscription option, priced at P75 per share. The public offering was fully subscribed by 1.5 times.

San Miguel treasurer and deputy chief finance Joseph Pineda, speaking during the listing ceremony, said the offerings give investors more flexibility and easier access to the group’s growth.

“For San Miguel this means putting capital to work where it creates real value in industries that keep the economy moving,” Pineda said.

PSE president and chief executive Ramon Monzon welcomed SMC’s preferred shares offering amid the current bearish market condition.

Monzon said the market is not all doom as companies continue to post strong earnings growth and are expected to sustain growth in the near future.

He said while several companies deferred equity raising plans because of poor market conditions, SMC and Maynilad Water Services Inc., which is planning to conduct an initial public offering next month, are still optimistic about the market.