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EEI Raises P6 Billion From Preferred Shares Offer
- By The Financial District
- Dec 23, 2021
- 2 min read
EEI Corporation has recently concluded the offering of its Series A (“EEIPA”) and Series B (“EEIPB”) Preferred Shares (the “Preferred Shares”) to the public, which commenced on December 9, 2021, and ended on December 15, 2021.
Photo Insert: EEI Corporation is grateful for the public's faith and trust in light of the challenges it has faced.
The offering marks the successful return of the Company to the equity capital markets since its PhP540 Million stock rights offering in 2007. Strong demand for EEI’s Preferred Shares from investors resulted in an order book that is 4.85x oversubscribed compared to the base offer of PhP4.00 Billion, allowing the Company to exercise the oversubscription option and upsize the total offering amount to PhP6.00 Billion.
"EEI's Preferred Shares were oversubscribed with strong demand from institutional and retail investors who want exposure to a major player in the infrastructure development of the country," said RCBC Capital Corporation, the Sole Issue Manager of the offering.
Proceeds from the issuance are expected to further aid the growth of the Company through the financing of its current and future projects and capital expenditures for new equipment for its operations.
Other uses for the proceeds of the offer include the repayment of existing short-term loans and funding of general and working capital requirements. EEIPA and EEIPB have an initial dividend rate per annum of 5.7641% and 6.9394%, respectively, and are scheduled to be listed on the Philippine Stock Exchange (“PSE”) on December 23, 2021.
"We’re grateful for the public’s faith and trust in our Company despite the challenges that we face. This fundraising exercise positions the Company to more actively participate in projects that contribute to nation building," said Cris Noel Torres, EEI Chief Financial Officer.
EEI has mandated RCBC Capital Corporation (“RCBC Capital”) as Sole Issue Manager and, together with SB Capital Investment Corporation (“SB Capital”), as Joint Lead Underwriters and Bookrunners for the issue.
