SMC to resume trading shares

MANILA, Philippines - Trading in San Miguel Corp. (SMC) stocks resumes today after a three-week voluntary suspension.

SMC voluntarily sought a trading halt of its common and preferred shares to avoid undue speculation as it prepared to price its bond and share offerings. The suspension took effect from April 13 to May 4.

Prior to the suspension, SMC’s share price had fallen as market players speculated that the company would price its offer shares at a discount to market price to make it more attractive to investors.

The offer price of the common shares had been pegged at P110 per share, a huge discount to its last closing price of P153 and market expectations of an offering price of P140 to P160.

SMC president Ramon S. Ang earlier committed that the shares would be priced in such a way that there would be something left in the table for subscribers.

SMC raised around $900 million consisting of $600 million in exchangeable bonds and $300 million in common shares during roadshows and bookbuilding conducted in Southeast Asia and the United Kingdom.

The exchangeable bonds will have a maturity of three years, a coupon rate of two percent per annum and a conversion premium of 25 percent to the offer price or P137.50 per share. The bonds will be listed on the Singapore Stock Exchange.

The local offering was roughly two times oversubscribed, according to the lead local underwriter.