SEC okays Petron's P10-B preferred shares offering
MANILA, Philippines - The Securities and Exchange Commission (SEC) en banc has approved oil giant Petron Corp.'s plan to raise P10 billion through a preferred share offering.
Petron said it will issue a total of 50 million preferred shares, with an oversubscription allotment of another 50 million shares. The shares, which will be listed in the first board of the Philippine Stock Exchange, will be sold from P50 to P100 apiece.
The preferred shares are non-voting and non-convertible, and are redeemable at the option of the company. They will also be given preference over common shares in case of Petron's dissolution.
BDO Capital and Investment Corp., BPI Capital Corp., and ING Bank N.V. Manila have been tapped as joint issue managers and lead managers for the offering.
Proceeds from the issue will be used to fund Petron's capital expenditure requirements, including repayment of its short-term debts, which stood at P45.6 billion as of end-September 2009.
Share prices of Petron closed up P0.10 or 1.968% on Thursday to P5.20 apiece.
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Gigantic!
Oil companies are not only giants but they are really BIG! We just pray they don't fold up like insurance companies. Letting them grow this big, makes them very influential and untouchable. Whenever you go against them, they have their own threats to our government. Sana di natin payagan maging ganito sila kalaki. mas mabuti na un madaming players para di ma-monopolize. nagiging sunud sunuran tuloy government.