PETRON Corp. said its executive committee has approved an offer of perpetual preferred shares raising up to P20 billion, the company said Friday.

In a disclosure, Petron said that the approval was granted at a May 30 meeting.

“Pursuant to the internal procedures and governance of the Company, approved at its meeting… the public offering of the perpetual preferred shares Series 3 of the Company amounting to P15 billion, with an oversubscription option of up to P5 billion,” the company said.

“The initial dividend rates of the Series 3 Preferred Shares and other features of the Series 3 Preferred Shares, and the final terms and conditions of the offer as set out in the Final Prospectus dated May 30, 2019 to be made available on the company website,” it said.

The committee was empowered by shareholder approval for the issue. It said it had received written assent of shareholders “representing more than a majority of the total outstanding common capital stock.”

The company’s board approved the issuance of 20 million preferred shares on March 12, under such terms as may be determined by the executive committee.

The approval also covers the registration of the preferred shares with the Securities and Exchange Commission and their listing on the Philippine Stock Exchange.

Petron is the country’s largest refiner and provides about 40% of domestic fuel requirements through its Bataan refinery, 30 terminals, and about 2,400 service stations.

It reported a first quarter net profit decline of 78% year-on-year to P1.3 billion due to the negative impact of tax reform, which among others raised the excise tax collected on fuel.

Petron shares were unchanged at P6.12 Friday. — Vincent Mariel P. Galang

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