Jollibee Foods Corporation Announces Plan to Issue Additional Preferred Shares

The Board of Directors of Jollibee Foods Corporation (JFC) has approved the company's intention to issue and offer an additional 5,000,000 Preferred Shares to the Philippine public, with the possibility of an oversubscription of up to 3,000,000 Preferred Shares. The Preferred Shares, provided the oversubscription option is fully exercised, will be sold for a subscription price of Php1,000.00 per share, with an expected issue size of Php5.0 billion to Php8.0 billion. These will be permanent preferred shares denominated in pesos that are cumulative, non-voting, non-participating, non-convertible, and redeemable.​

The Securities and Exchange Commission's Markets and Securities Regulation Department approved the 20,000,000 Preferred Shares Shelf Registration on September 24, 2021, and this anticipated additional Preferred Share issuance will be offered as the second tranche under that registration. The Philippine Stock Exchange will list the preferred shares in their second tranche. The Securities and Exchange Commission and the Philippine Stock Exchange, respectively, must approve the issue and listing of the second tranche of the preferred shares.

The first tranche of the Preferred Shares previously offered consisted of 3,000,000 Series A Preferred Shares with a dividend rate of 3.2821% p.a. and 9,000,000 Series B Preferred Shares with a dividend rate of 4.2405% p.a. The dividend rate and other terms of the planned additional Preferred Shares will be determined at the time of pricing of the offering.

Through the management of financial obligation maturities, JFC hopes to preserve a healthy capital structure, a strong leverage position, and optimal liquidity. The callable Series A Preferred Shares of JFC, which are due in October 2024, will be one of the financial obligations that will be refinanced with part of the offering's net proceeds, along with other general business uses.

The permitted shares in JFC's equity base will remain the same, with the second tranche of preferred shares resulting from a reclassification of the company's current authorized and unissued common shares. The present cash dividend policy, which allocates 33% of net income to parent company common equity holders, will be unaffected by the issuing of preferred shares.​

Underwriting for the second tranche of preferred shares will be shared by BPI Capital Corporation, BDO Capital, and Chinabank Capital Corporation.
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JFC is one of the largest Asian food service companies with 18 brands in 33 countries. At the end of December 2023, JFC’s store network increased by 6.3% compared to a year ago. JFC operated 6,885 stores worldwide: Philippines (3,339) and International (3,546): 567 in China, 389 in North America, 337 in EMEA, 779 with Highlands Coffee mainly in Vietnam, 1,164 with CBTL and 310 with Milksha. Its largest brands by store outlets worldwide are Jollibee with 1,660, CBTL 1,164, Highlands Coffee 779, Chowking 613, and Mang Inasal 573.