SAN MIGUEL Corp. has applied to launch the second tranche of its preferred shares offering, which will generate funds to support its repayment of loans and additional investments in its P734-billion Bulacan airport project.

In a disclosure to the exchange on Tuesday, the company said it has filed an updated registration statement with the Securities and Exchange Commission to issue up to P20-billion preferred shares.

The proposed offering is composed of up to 266,666,667 Series 2 preferred shares priced at P75 each, which will come from San Miguel’s shelf registration of 533,333,334 preferred shares.

It likewise applied with the Philippine Stock Exchange (PSE) to lift the trading suspension for the second tranche of its shelf-registered preferred shares.

To recall, San Miguel’s board of directors had approved in August the shelf registration of 533,333,334 preferred shares, which may be issued in tranches over a three-year period.

San Miguel offered the first tranche earlier this month, consisting of 266,666,667 preferred shares at P75 each. They are tentatively scheduled to list on the PSE on Oct. 29.

Based on its updated prospectus as of Oct. 26, the company looks to offer 133,333,400 preferred shares and allot up to 133,333,267 shares as an oversubscription option for the second tranche of the offering. These will likewise be listed and traded on the main board of the PSE.

It estimates to raise P19.89 billion net proceeds from the offering, assuming the full exercise of the oversubscription option.

“The use of proceeds for this offer will be for refinancing of the existing obligations of the company and for additional investments in the airport and airport-related projects of the company, and in Bank of Commerce,” the company said in its prospectus.

The proceeds from the first tranche of its share sale are meant to support San Miguel’s Bulacan airport project and P62.7-billion Metro Rail Transit Line 7 construction project.

The company has tapped BDO Capital & Investment Corp., China Bank Capital Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. as joint issue managers, joint lead underwriters, and bookrunners for the offering.

It also engaged Philippine Commercial Capital, Inc. as co-lead underwriter and joint bookrunner.

San Miguel booked an attributable net loss of P7.59 billion in the first semester of 2020, a turnaround of its earnings of P13.23 billion a year ago, as a result of the coronavirus pandemic to its fuel and beer businesses.

San Miguel shares closed at P101.10 apiece on Tuesday, down P1.90 or 1.84% from the last session. — Denise A. Valdez