AYALA Corp. has received board approval to issue up to P15 billion worth of peso-denominated preferred shares, aimed at supporting its capital raising efforts, the listed company announced on Thursday.
The proposed offering includes a base amount of P10 billion with an option to oversubscribe for an additional P5 billion, pending regulatory approvals, Ayala Corp. said in a disclosure to the stock exchange.
The conglomerate did not disclose detailed terms of the issuance.
“Appropriate disclosures shall be made once the terms have been finalized,” it said.
The conglomerate has allocated P284 billion for its capital expenditure (capex) budget this year, marking a 14% increase from the previous year.
The capex budget focuses on expanding the operations of its energy arm ACEN Corp. and property unit Ayala Land, Inc.
In May, Ayala Corp. sold its remaining stake in east zone concessionaire Manila Water Co. to Razon-owned Trident Water Co. Holdings, Inc. for $252 million. The deal is part of the conglomerate’s divestment plan to raise P50 billion, which will be used for financing future investments and reducing debt.
For the first quarter, Ayala Corp. saw a 28% jump in its attributable net income to P13.07 billion while consolidated revenue increased by 10.5% to P87.27 billion. The conglomerate said the growth came from its banking and property segments.
Ayala Corp. shares climbed by 1.38% or P8, closing at P588 per share on Thursday. — Revin Mikhael D. Ochave
