THE Securities and Exchange Commission has given its go signal to the P3-billion follow-on offering of property developer Arthaland Corporation under the SEC’s shelf registration program.
In an email forwarded to the media, the SEC said it approved Arthaland’s P3-billion share sale during an en banc session on Tuesday.
Under the shelf registration program, Arthaland would initially offer up to 20 million preferred shares priced at P100 each, to raise a total of P2 billion. This first tranche will be composed of 100 million base offer shares and another 10 million shares for the oversubscription option.
The rest of the 10 million shares, also to be valued at P100 per share, will be offered in a future fundraising exercise.
The offer shares are classified as cumulative, non-voting, non-participating, non-convertible, redeemable preferred shares.
A shelf registration program under SEC allows the company to register shares or bonds that can be issued to the public in a span of three years.
Net proceeds of P1.97 billion from the initial issue would be used to fund Arthaland’s projects and repay loans as well as for general corporate purposes.
Projects to be funded include the Cebu Exchange project (P53.6 million), Binan Laguna project (P331.9 million), Makati CBD residential project (P371.6 million), and south of Metro Manila project (P822.4 million).
The dividend rate for the initial offering will be set November 8 and 9, while the offer period will be from November 14 to 18. Listing of the shares on the Philippine Stock Exchange (PSE) is expected on November 25.
BDO Capital & Investment Corp. is the sole issue manager, bookrunner, and lead underwriter of the transaction.
Arthaland’s Cebu Exchange project is a commercial development within the Cebu IT Park in Lahug, Cebu City which is expected to be launched later this year.
The Binan Laguna project is a campus-type residential project for low-rise residential, retail building and townhouse developments that will cater primarily to the student, faculty and other employees of the academic community in the area. It will sit on 8.2 hectares of land, which will be funded by the company’s share sale from the fourth quarter of 2016 to the second quarter of next year.
The Makati CBD residential project is a high-rise condominium development on a 2,000-square meter (sqm) parcel of land in Makati City, which is still being acquired by Arthaland’s unit Zileya Land Development Corp. at present.
The south of Metro Manila project, on the other hand, is a medium rise office building on a 3,000-sqm block in southern Metro Manila. The acquisition of the property is still under negotiation, but the project is expected to yield up to 30,000 sqms of leasable office space.
Arthaland is engaged in property development of residential, commercial, leisure, and industrial projects.