6 hours ago
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The Ayala Corp. [AC 596.50, down 1.5%] [link] board of directors approved a plan to issue up to P20 billion in peso-denominated preferred shares. The issuance will have a base offer of up to P10 billion, with an oversubscription of up to an additional P10 billion. AC didn’t provide any further details.
MB bottom-line: AC raised P15 billion in October through a similar preferred shares sale with a similar “base + 100% oversubscription” configuration. Back then, they sold the full amount of the firm offer and half of the oversubscription. If AC were able to do the same this time, they’d pull in the same P15 billion. While they didn’t mention what the money is for, it’s probably also for the same reason: to juggle debt. The previous prefs were sold to raise money to redeem other preferred shares. There seems to be a vibrant market for defensive investments right now.
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