San Miguel Pure Foods lists 15-B preferred shares

Posted at 03/03/11 3:05 PM

San Miguel Pure Foods Company, Inc. (SMPFC), the food products arm of San Miguel Corp. (SMC) raised P15 billion from an offering of 15 million shares which was well received by local retail and institutional investors. SMPFC owns some of the best known and well-regarded brands in the Philippine food industry such as Magnolia, Purefoods, Monterey, B-Meg, Star, Dari Crème and JellyAce. Shown in the photo during the listing ceremony at the Philippine Stock Exchange (PSE) are (from left): SMC Treasurer Sergio Edeza; SMC Chief Financial Officer (CFO) Ferdinand Constantino; SMPFC CFO Zenaida Postrado; SMPFC President Francisco Alejo III; SMC President Ramon S. Ang; PSE Chairman Cornelio T. Peralta; PSE Directors Jose T. Pardo and Vivian Yuchengco; and PSE President Hans B. Sicat. Photo credit: Philippine Stock Exchange


MANILA, Philippines (UPDATED) - On Thursday, the San Miguel group's closely held unit San Miguel Pure Foods Co Inc. listed 15 million preferred shares after a P15 billion public offering.

Pure Foods' preferreds, which carry a fixed dividend rate of 8% per annum, gained as much as 4% at its market debut but erased most of its gains to end just 0.2% higher in a market that advanced 1.6%.

Pure Foods listed the 15 million preferred shares in the Philippine Stock Exchange and were sold at P1,000 per share.

Pure Foods said it would use bulk of the proceeds from the share sale to fund expansion and possible acquisitions.

Proceeds from the preferred shares offering will be spent as follows: 

  • P3.615 billion on products and businesses in the first half of 2011
  • P11.235 billion on investments
  • P1.485 billion on general corporate expenditures from 2011 to 2012

BDO Capital and Investment Corp., Hongkong and Shanghai Banking Corp. Ltd., SB Capital Investments Corp. and Standard Chartered Bank are the joint issue managers and lead underwriters for the share sale. 

Share price of Purefoods preferred shares on Thursday closed at P1.002.

The preferred share issue is part of the compan'y s program to raise a total of P50 billion to fund its expansion and diversification into new businesses to include power generation, water and infrastructure.

San Miguel Pure Foods -- which owns the brands Purefoods, Magnolia, Monterey, Star, San Mig Coffee, and B-Meg -- accounts for 6 of every 10 hotdogs, and 4 of every 10 chickens sold in the country. - with Reuters