San Miguel Corporation (SMC) listed a combined P48.86 billion worth of preferred shares at the Philippine Stock Exchange (PSE), marking the country’s first-ever preferred share exchange offer by a private company alongside a public offer.
The conglomerate’s P18.86 billion exchange offer covered its Series 2-P, 2-Q, and 2-R preferred shares, allowing holders of its Series 2-J and 2-K shares to swap their investments on a one-for-one basis instead of waiting for redemption.
“The company, one of the Philippines’ largest and most diversified conglomerates, is invested in industries essential to nation-building and remains among the most active corporate issuers in the domestic capital markets,” SMC said in a statement.
SMC’s move introduces greater flexibility and liquidity for investors, an innovation in the local capital markets traditionally limited to straightforward redemptions.
A total of 251.47 million shares were tendered under the exchange offer, comprising 173.76 million Series 2-J and 77.71 million Series 2-K shares. The remaining 92.91 million Series 2-J and 106.19 million Series 2-K shares will be redeemed on October 29 and December 10, 2025, respectively.
At the same time, SMC launched P30 billion public offer of preferred shares—Series 2-S, 2-T, and 2-U—consisting of a P20 billion base offer and a P10 billion oversubscription option, priced at P75 per share which was fully subscribed.
SMC said the twin offerings are part of its broader strategy to align capital structure with long-term value creation and to give investors more avenues to participate in its growth.
SMC PHOTO