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Business

SEC OKs Jollibee’s P20 billion preferred share issuance

Iris Gonzales - The Philippine Star

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the P20 billion preferred share shelf registration of Jollibee Foods Corp. (JFC).

Part of the proceeds would fund JFC’s expansion.

JFC wholly owned subsidiary Zenith Foods Corp. plans to build a new commissary in Cebu to support its business needs in Visayas and Mindanao.

The preferred shares will be issued in one or more tranches within a period of three years, as allowed under the SEC’s shelf registration program.

For the first tranche, the company will offer up to P8 billion worth of preferred shares, with an over-allotment option of up to P4 billion.

Jollibee expects to net P11.9 billion from the initial offer,  assuming the oversubscription option is fully exercised.

Proceeds will be used for the partial redemption of its senior perpetual securities, as well as for capital expenditures for its commissary and new store expansion.

The company registered  up to 20 million cumulative, non-voting, non-participating, non-convertible, and redeemable perpetual preferred shares to be sold at P1,000 apiece.

The first tranche of the offer is scheduled on Sept. 28 to Oct. 4, based on the latest timetable submitted to the SEC.

JFC tapped BPI Capital Corp. as the issue manager for the transaction, and will also serve as joint lead underwriter and bookrunner alongside BDO Capital & Investment Corp, China Bank Capital Corp. and SB Capital Investment Corp.

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