Listed property developer Century Properties Group Inc. obtained the approval of the Philippine Stock Exchange to list P3 billion worth of preferred shares.
Century plans to use proceeds from the offering to fund expansion into the commercial leasing business, specifically a new office development, and the capital expenditures of leasing projects.
The PSE approved the listing of up to 30 million preferred shares to cover the follow-on public offering of the company at an offering price of P100 per share.
The offer includes the sale of 20 million shares to the public. The company said in case of an oversubscription, the sole issue manager, lead underwriter and sole book-runner reserved the right to increase the offer size by up to an additional 10 million shares.
Century set the dividend rate at 6.7177 percent a year. The offer period is scheduled from December 16, 2019 to January 3, 2020, with the target listing date set on January 10, 2020.
The company will pay the dividends quarterly, or every January 10, April 10, July 10 and October 10 of each year.
The preferred shares will be issued out of the unsubscribed capital stock of the company. It will be listed on the main board of the PSE under the trading symbol “CPGP.”
China Bank Capital Corp. will act the sole issue manager, lead underwriter and sole book-runner of the transaction.
Century chief finance officer Ponciano Carreon said the offering was part of the company’s bullish business expansion.
From being primarily focused on high rise condominiums, the company rolled out a diversification program four years ago to enter into allied real estate segments, namely affordable horizontal housing business outside of Metro Manila through the brand PHirst Park Homes, commercial leasing to boost recurring revenue streams, and a new line of in-city developments with medium-rise buildings.
Century early this year successfully raised P3 billion from a bond offering to finance its affordable housing and town home projects.