SMFB’s P142-billion follow-on offering to depend on price

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Appetite for San Miguel Food and Beverage, Inc. (SMFB)’s P142-billion follow-on offering will depend on its pricing, as the company undertakes the largest fundraising activity in the country before the end of the year.

In a regulatory filing at the Securities and Exchange Commission, SMFB applied to sell up to 1.02 billion common shares, consisting of 887 million common shares with an over-allotment option of up to 133.05 million common shares, priced at up to P140 apiece. The shares to be offered are currently owned by parent, San Miguel Corp. (SMC).

The shares comprise 17.26% of the company’s issued and outstanding capital stock. The offering will allow SMFB to comply with the minimum public ownership rule of 10%, as its current public float stands at 4.12%.

Once it secures approval from the SEC and Philippine Stock Exchange, the listed food and beverage company looks to price the offering by Oct. 19. The offering is scheduled to run from Oct. 23 to 29. Crossing of the offer shares is slated for Nov. 6. — Arra B. Francia