The Securities and Exchange Commission (SEC) said Friday it approved the plan of Jollibee Foods Corp. to sell P20 billion worth of preferred shares.  

In its meeting on September 16, the Commission En Banc rendered effective the registration statement of JFC covering up to 20 million preferred shares at an issue price of P1,000 per share, subject to certain remaining requirements.

JFC may issue the preferred shares in one or more tranches within a period of three years, the SEC said,

For the first tranche, the company will offer up to P8 billion worth of preferred shares, with an overallotment option of up to P4 billion.

The listed company expects to net P11.9 billion from the offer, assuming the oversubscription option is fully exercised. 

Proceeds will be used for the partial redemption of its senior perpetual securities, as well as for capital expenditures for its commissary and new store expansion.

JFC wholly-owned subsidiary Zenith Foods Corporation is planning to build a new commissary in Cebu to support its business needs in Visayas and Mindanao. 

The company also intends to open new stores in the Philippines, most of which will be in Luzon.

The preferred shares will be listed and traded on the Main Board of the Philippine Stock Exchange. 

The first tranche is scheduled for public offering from September 28 to October 4, based on the latest timetable submitted to the SEC.