The Securities and Exchange Commission (SEC) said Wednesday it approved the P20-billion preferred shares offering of conglomerate Ayala Corp.
Ayala is re-issuing 5 million preferred B shares, with an overallotment option for another 5 million shares, subject to the company’s compliance with certain remaining requirements.
Ayala will offer the preferred shares at P2,000 apiece. Assuming the overallotment option is fully subscribed, the listed conglomerate could net up to P19.86 billion from the offer.
Proceeds will be used to repay its short-term bank loans as well as for general corporate purposes and capital expenditures.
Assuming the oversubscription is exercised, Ayala will allot P11.5 billion for repayment of short term loan with Bank of the Philippine Islands (BPI) and another P1.3 billion of partial repayment of another BPI short term loan.
The remaining P7 billion will be set aside for investment in power generation unit ACEN Corp., which is planning to conduct a stock rights offering.
The offer shares are expected to be re-issued and listed on the main board of the Philippine Stock Exchange on June 18, according to the latest timeline submitted to the SEC.
The conglomerate hired seven banks including 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 earmarked P230 billion for 2025 capital expenditures to support the expansion plans of its core real estate, power generation and telecommunication businesses.
Bulk of this year’s spending will go to the group’s property unit Ayala Land Inc. (ALI) which budgeted P95 billion to roll out more malls, hotels and residential projects.
Power generation unit ACEN Corp. will receive P70 billion, up 44 percent from last year’s P48.7 billion to support incoming pipeline projects.
Globe Telecom Inc. will also spend P46.6 billion, lower than the 2024 spending of P56.2 billion, while AC Mobility will spend P3.8 billion this year, up by 125 percent from P1.7 billion in 2024 as it ramps up inventory, dealership and EV charging infrastructure.
