San Miguel Corp. Completes Record P30 Billion Follow-On Offering

San Miguel Corp. (SMC) has successfully completed a follow-on offering of preferred shares amounting to P30 billion (approximately $525 million), marking the largest such transaction in the Philippine market in seven years. The shares were listed on the Philippine Stock Exchange (PSE) on Monday under the ticker symbols SMC2V, SMC2W, and SMC2X, with dividend rates of 8.0401%, 8.3570%, and 8.6483%, respectively.

The PSE President and CEO, Ramon Monzon, highlighted that this offering was oversubscribed by 3.27 times, indicating a robust demand from investors. He noted that SMC has raised a total of P146.65 billion (approximately $2.57 billion) from 11 preferred share subseries across five follow-on offerings since 2020, further solidifying its reputation as a leading capital market issuer in the Philippines.

Monzon remarked that SMC might as well stand for 'Stock Market Champion' — at least in terms of fundraising, reflecting the sustained investor interest in SMC's preferred securities, which has been a significant factor in the company's fundraising success.

“With a track record like that, SMC might as well stand for 'Stock Market Champion' — at least in terms of fundraising.”Ramon Monzon, PSE President and CEO

According to SMC, the proceeds from this latest offering will primarily be utilized to refinance existing obligations, including the redemption of Series 2-I preferred shares and the repayment of Series C and Series J bonds maturing in 2027. Additionally, part of the funds will support the company’s ongoing infrastructure investments, notably the New Manila International Airport and related developments in Bulakan, Bulacan.

On the day of the listing, SMC's shares experienced a slight decline, closing at P65.90 (about $1.16) after dropping by P1.10, or 1.64%.