Ayala cleared to sell P20 billion preferred shares

MANILA, Philippines —  Ayala Corp.’s preferred shares offering of up to P20 billion has received the green light from the Securities and Exchange Commission.

The SEC said it has considered favorably the offering of preferred shares by the country’s oldest conglomerate in its meeting on May 27.

Ayala’s registration statement covers the re-issuance of five million preferred B shares, with an overallotment option of up to five million shares.

The company will offer the preferred shares at P2,000 apiece.

Should the overallotment option be fully subscribed, Ayala could net up to P19.86 billion from the offer.

The company intends to use the proceeds from the offer to repay its short-term bank loans as well as for general corporate purposes and capital expenditures.

Based on the latest timeline submitted by Ayala to the SEC, the offer shares are expected to be re-issued and listed on the main board of the Philippine Stock Exchange on June 18.

Ayala tapped BPI Capital Corp., BDO Capital Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp. as joint lead underwriters and bookrunners for the offer.

Ayala is setting its sights on its next best year after posting its strongest year ever in 2024, with 2025 seen as inflection year for its small businesses.

The conglomerate posted record core earnings of P45 billion in 2024 despite several of its smaller businesses registering losses.