Fast-food chain operator Jollibee Foods Corp. (JFC) on Thursday listed its first-ever preferred shares on the Philippine Stock Exchange (PSE).
“We are grateful to our investors in Jollibee. It humbles us to see that our offering of 8 million preferred shares has been oversubscribed by 3.11 times. Thank you especially to the retail investors who accounted for the vast majority of the investments in our preferred shares,” Jollibee President and CEO Ernesto Tanmantiong said.
The offering of 12 million preferred shares is the fifth security issued by Jollibee for investment by the public.
“To all our investors, we signify again our commitment to be excellent stewards of your investments in JFC, whether they are shares in JFC Common Stock, US Dollar Senior Perpetual Capital Securities issued in January 2020, US Dollar 5.5-Year and 10-Year Senior Debt Securities in June 2020, or these Peso Preferred Shares,” Tanmantiong said.
In his message, PSE Chairman Jose T. Pardo cited the pandemic’s impact on the company’s bottomline and noted the improvement in Jollibee’s second quarter revenues and its store openings in the first half.
“I am hopeful that uncertainties will be tempered as more and more get vaccinated, leading to a pick-up in consumption and eventually a recovery in store sales. Full recovery may take some time but this adversity provides an opportunity for the company to revisit and recalibrate its strategy,” Pardo said.
The issuance of preferred shares and the buyback of its US dollar perpetual securities are part of the overall plan to strengthen the Jollibee Group’s balance sheet, especially as the company aims to accelerate its worldwide store expansion in 2022 and beyond.
The company said the issuance of preferred shares will not change the current cash dividend policy on the company’s common shares, and that it will continue to declare cash dividends equivalent to 33 percent of net income attributable to common equity holders of the company.
“To all our employees, customers, partners, and stakeholders, thank you for being part of our journey, for believing in us, and moving forward with us. Together with you, we will continue to dream big—not only to be the best in the Philippines, not only to be the best in Asia, but to be one of the top five restaurant companies in the world,” Tanmantiong said.
Image courtesy of Contributed Photo