EEI Corp. is preparing to participate in more construction projects after raising P6 billion from its follow-on offering (FOO).
On Thursday, the company listed its preferred shares at the Philippine Stock Exchange (PSE) after a successful offer period that was nearly five times oversubscribed.
“Our infrastructure projects have been increasing significantly as our country is now focused on its building infrastructure facilities to serve our ever-growing population,” EEI President and Chief Executive Officer Roberto Jose L. Castillo said during the listing ceremony.
“The funding requirements for the construction of mega-projects are very substantial. It is for this reason that we are raising additional capital to be able to participate in more and bigger infrastructure projects,” he added.
EEI issued 60 million preferred shares for P100 each, raising P6 billion from its FOO. It listed Series A and Series B preferred shares with a per annum initial dividend rate of 5.7641% and 6.9394%, respectively.
The company’s preferred shares will help “restructure the right side of [EEI’s] balance sheet to enhance contracting capacity and acquire better equipment.”
“We will also continue to go into environment-friendly ventures, like our investments in renewable energy production to add stable and sustainable revenue streams for the company,” Mr. Castillo said.
EEI’s Series A preferred shares closed 4.5% higher or P4.50 to finish at P104.50 on Thursday, while its Series B preferred shares went up 5.60% or P5.60 to P105.60 each.
Meanwhile, EEI shares at the stock exchange inched up 1.25% or 8 centavos to close at P6.50 apiece. — Keren Concepcion G. Valmonte
