Oil giant Petron Corp. has been cleared by the Philippine Stock Exchange (PSE) to proceed with its planned follow-on offering of preferred shares worth as much as P17 billion.

The PSE said it approved Petron's application for the follow-on offering of up to 17 million Series 4 preferred shares to be issued in two subseries, Series 4D and Series 4E, at an offer price of P1,000 apiece.

The offer will consist of a base offering of 13 million Series 4 preferred shares and an oversubscription option of up to four million shares.

These represent the second tranche of Petron's shelf registration of up to 50 million preferred shares.

Petron said that if the oversubscription option is exercised in full, there would still be at least 19 million shares remaining under the shelf registration.

The offer period will run from Sept. 5 to 13, with the offer shares to be issued on Sept. 23.

Proceeds will be used by Petron to redeem the Series 3A preferred shares, refinance maturing obligations and fund general corporate purposes, including the purchase of crude oil inventory.

BDO Capital and Investment Corp. will serve as the sole issue manager.

BDO Capital, Bank of Commerce, China Bank Capital Corp., Philippine Commercial Capital Inc., PNB Capital and Investment Corp. and SB Capital Investment Corp. are the joint lead underwriters and bookrunners.

Copyright © 2022 PhilSTAR Daily, Inc Provided by SyndiGate Media Inc. (Syndigate.info).