Conglomerate Ayala Corp. said Thursday it is raising up to P17.21 billion from the sale of treasury and preferred shares.
Ayala said in a disclosure to the stock exchange its executive committee approved the sale of 3.07 million treasury shares at not less than P720 per share. This will enable the company raise at least P2.21 billion in fresh capital.
“The proceeds from the sale will be used for general corporate purposes,” Ayala said.
The block sale by Ayala of treasury common shares will be subject to the approval of the Philippine Stock Exchange (PSE).
Prior to the transaction, the conglomerate has 15.244 million treasury common shares. After the deal, its treasury shares will drop to 12.7 million.
Meanwhile, the PSE approved Ayala’s P15-billion preferred shares offering.
Under the plan, the conglomerate will reissue and sell up to 5 million preferred shares at P2,000 apiece. In case of oversubscription, the group may increase the size of the offer by an additional 2.5 billion shares.
The preferred shares will have an initial dividend rate of 6.0538 percent per annum. The offer period will be from Oct. 1 to Oct 7. The shares will be listed on the main board of the PSE on Oct 15.
BPI Capital Corp. will serve as the issue manager. Ayala also engaged BDO Capital & Investment Corp., BPI Capital, China Bank Capital Corp.,PNB Capital and Investment Corp. RCBC Capital Corp. and SB Capital Investment Corp. as joint lead underwriters and book runners for the transaction.
The group budgeted P284 billion for 2024 capital expenditures to support the expansion plans of its core real estate, telecommunication, power generation, banking businesses and its emerging businesses such as healthcare and automotive.
The capital expenditure budget will be used to expand the operations of its energy arm ACEN Corp. and expansion of property unit Ayala Land, Inc.
