SMC capital raise nets P49-B for mega-projects

Infrastructure and manufacturing giant San Miguel Corp. (SMC) listed P48.86 billion in preferred shares at the Philippine Stock Exchange following the successful completion of its pioneering preferred share exchange offer and public offering.

- By JAMES A. LOYOLA

SMC’s P18.86 billion exchange offer covered its Series 2-P, 2-Q, and 2-R preferred shares, allowing holders of its Series 2-J and 2-K shares to swap their investments on a one-for-one basis instead of waiting for redemption.

The move introduces greater flexibility and liquidity for investors, an innovation in local capital markets that has traditionally been limited to straightforward redemptions.

A total of 251.47 million shares were tendered under the exchange offer, comprising 173.76 million Series 2-J and 77.71 million Series 2-K shares.

The remaining 92.91 million Series 2-J and 106.19 million Series 2-K shares will be redeemed on Oct. 29 and Dec. 10, 2025, respectively.