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Stock Commentary

San Miguel raised P34-B through successful follow-on offering

Merkado Barkada
San Miguel raised P34-B through successful follow-on offering

San Miguel [SMC 108.00, up 1.9%; 52% avgVol] [link] disclosed that it sold P34 billion worth of the three series of preferred shares that it sold as part of its most recent follow-on offering (FOO). The base offer raised P30 billion, and SMC sold an additional P4 billion worth of shares through its oversubscription option. The shares will list on December 1 under the tickers SMC2LSMC2N, and SMC2O.


MB bottom-line: This lines up with the feedback that I got from my contacts on the take-up of this FOO with retail traders. SMC couldn’t sell enough of this offer to the institutional investors, but the same demand just wasn’t there within the retail tranche. SMC still sold all of the base offer shares, but it had made up to P50 billion shares available for purchase. SMC sold only 20% of its oversubscription option, and raised about 68% of the total amount that it could have raised. I doubt SMC is concerned; they successfully raised enough money to juggle their debt, and the FOO was part of a shelf registration that is still active so they can just reload and go again at any time. The MB Underwriter League Table will be updated when the shares list on December 1.

 

 

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