Ayala Corp. secures SEC nod for P20-billion share offer

THE Securities and Exchange Commission (SEC) has approved Ayala Corp.’s preferred share offering of up to P20 billion.

In a meeting held on May 27, the Commission En Banc rendered effective the registration statement of Ayala Corp., the corporate regulator said in an e-mail statement on Wednesday.

The offering consists of the re-issuance of 5 million preferred B shares, with an overallotment option of up to 5 million additional shares, both priced at P2,000 per share.

Ayala Corp. expects to raise up to P19.86 billion in net proceeds if the overallotment option is fully subscribed.

Proceeds from the offer will be used to repay short-term bank loans, and for general corporate purposes and capital expenditures.

The latest draft prospectus dated May 20 showed that the initial dividend rate setting date is Wednesday, May 28, while the offer period is scheduled from June 2 to June 6.

The preferred shares will be re-issued and listed on the main board of the Philippine Stock Exchange on June 18. Trading is expected to commence on the same date.

Ayala Corp. engaged BPI Capital Corp., BDO Capital and Investment Corp., Chinabank Capital Corp., First Metro Investment Corp., PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corp. as joint lead underwriters and bookrunners for the offer.

“For sure, there is demand for this because it is Ayala Corp. But of course, investors want a competitive yield,” DragonFi Securities, Inc. Equity Research Analyst Jarrod Leighton M. Tin said in a Viber message.

“Ayala is a sterling name in the capital markets, so we expect this offering to be well received by institutional and retail investors. This is an opportunity for investors to deploy cash in high quality preferred shares ahead of potential Bangko Sentral ng Pilipinas rate cuts in the next several months,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

For the first quarter of 2025, Ayala Corp. reported a 4% decline in net income to P12.6 billion, primarily due to weaker contributions from its power and telecommunications units. Ayala Corp. shares fell by 1.46% or P8.50 to close at P575.50 apiece on Wednesday. — Revin Mikhael D. Ochave