San Miguel Corporation raises P30B from follow-on offering

KUALA LUMPUR, 13 AUGUST 2026 —

San Miguel Raises P30 Billion in Largest Philippine Preferred-Share Offering Since 2020

KUALA LUMPUR, Aug 12 (Reuters) – San Miguel Corporation (SMC) has completed the Philippines’ largest preferred-share follow-on offering in six years, raising P30 billion through three new series listed on the Philippine Stock Exchange (PSE) on Aug 3, 2026.

The issuance of Series 2V, 2W and 2X preferred shares—traded under the ticker symbols SMC2V, SMC2W and SMC2X—was oversubscribed 3.27 times, according to PSE President and CEO Ramon S. Monzon. The offering marks SMC’s fifth follow-on issuance since 2020 and brings its total proceeds from preferred shares to P146.65 billion across 11 subseries. Monzon described SMC as the “Stock Market Champion” in fundraising, citing consistent investor demand for its high-yield instruments.

The new series carry annual dividend rates of 8.0401% for SMC2V, 8.3570% for SMC2W and 8.6483% for SMC2X, positioning them among the highest-yielding preferred shares in the Philippine market. The PSE noted that SMC’s cumulative P146.65 billion raised since 2020 exceeds any other issuer’s follow-on proceeds during the same period.

Malaysia Market Impact

While the offering is denominated in Philippine pesos and listed on the PSE, its size and structure may influence investor sentiment in Malaysia’s regional fixed-income and equity markets. Malaysian fund managers tracking ASEAN high-yield instruments could view SMC’s preferred shares as a benchmark for comparable corporate issuances in the Philippines and Southeast Asia. The strong oversubscription rate may also reinforce confidence in Philippine corporate debt markets, potentially encouraging similar offerings by other regional conglomerates.

However, Malaysian investors should note that SMC’s preferred shares are not ringgit-denominated and carry foreign-exchange risk. The dividend yields, while attractive in peso terms, may be subject to currency fluctuations between the Philippine peso and Malaysian ringgit.

Sector and Company Context San Miguel Corporation is one of the Philippines’ largest and most diversified conglomerates, with core businesses in food and beverage, infrastructure, energy, and packaging. Its frequent recourse to preferred-share issuances reflects a strategic preference for equity-like capital with fixed dividend obligations, which can be structured to optimize its capital structure and maintain investment-grade credit ratings.

The company’s ability to repeatedly tap the market at competitive rates underscores strong investor trust, particularly among local institutional buyers such as banks, insurance firms and pension funds. The PSE’s commendation highlights SMC’s role in deepening the local capital market and setting fundraising benchmarks.

Outlook With the latest P30 billion infusion, SMC strengthens its liquidity position to fund ongoing infrastructure projects and debt refinancing. The oversubscribed response suggests sustained appetite for high-yield, quasi-equity instruments in the Philippines, though rising global interest rates may temper future issuance volumes.

For Malaysian investors, SMC’s preferred shares serve as a reference point for yield levels in regional high-yield markets. While direct investment is limited to peso-denominated instruments, the offering’s success may indirectly support broader confidence in ASEAN corporate debt markets. Further developments on SMC’s capital-raising plans and dividend policies are expected to be announced in its quarterly earnings releases.

Details not yet available regarding potential secondary-market trading volumes or international investor participation in the new series.

Related: San Miguel Corporation · Philippine Stock Exchange