8990 Holdings hikes follow-on offering

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Listed low-cost housing developer 8990 Holdings, Inc. will increase the size of its follow-on offering from 1.03 billion common shares to 1.24 billion shares to raise funds for its land banking activities and working capital.

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Earlier this year, the Securities and Exchange Commission (SEC) approved the company’s plan to raise P13 billion through a follow-on offering consisting of both secondary and primary shares.

A previous filing with the SEC specified that 8990 Holdings intended to sell 1.034 billion shares at a maximum price of P12.70 per share from January 30 to February 14, 2014.

At a board meeting, the company proposed a follow-on offering of up to 1.2 billion base shares, consisting of up to 862.2 million primary shares and 382 million secondary shares.

In addition, an overallotment option was proposed to be granted to a stabilizing agent covering a total of 134 million over-allotment shares, representing about 10 percent of the base offer shares.

The follow-on offering and its terms are subject to the approval of the Securities and Exchange Commission and the Philippine Stock Exchange.

UBS AG, Hong Kong branch is the sole global coordinator, sole international bookrunner and lead manager for the transaction, while UBS Investment Philippines, Inc. will be the domestic lead underwriter, together with SB Capital.

At the same meeting, the 8890 board also approved the commencement of a proposed securitization transaction involving subsidiaries of the corporation.

The transaction will involve the conveyance of up to P1 billion of receivables arising from eligible contracts to sell entered into by the corporation’s subsidiaries with its housing buyers.

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