San Miguel Food and Beverage eyes follow-on offering

Listed companies have been required to increase their public float to at least 15 percent. (Photo from http://www.sanmiguel.com.ph/article/beverages)

MANILA — San Miguel Food and Beverage Inc. (SMFBI) is looking to raise fresh funds through a follow-on offering by the second quarter to widen public ownership.

“Yes, there will be a follow-on (offering) for the additional float for the food and beverage company. And this is to meet the minimum requirement of at least 15 percent,” said San Miguel Pure Foods (SMFI)) President Francisco Alejo during the company’s special stockholders’ meeting on Thursday.

Diversified conglomerate San Miguel Corp. is consolidating its food and beverage businesses San Miguel Brewery Inc. and Ginebra San Miguel Inc. under SMFI, and being renamed SMFBI. The consolidation will bring SMFBI’s public float to 4.13 percent.

Listed companies have been required to increase their public float to at least 15 percent.

Alejo further said it would still deliberate on the various options on the timing and size of the transaction. 

SMC chief finance officer Ferdinand Constantino told reporters they target to conduct the follow-on offering by the second quarter this year.

Constantino said they have yet to determine the expansion funding requirements of the food and beverage firm.

He added the food unit last year started embarking on a PHP50-billion three-year expansion.