Boutique property developer Arthaland Corp. plans to raise P3 billion from a follow-on offering of 30 million preferred shares priced at P100 apiece.
Arthaland, a listed company controlled by the Po family, said in a disclosure to the stock exchange its board approved the offer, sale and distribution of Series B preferred shares from the unissued authorized capital stock by way of follow-on offering.
The company recently secured shareholders’ approval to increase authorized capital stock to P2.996 billion from P2.946 billion to create 50 million preferred shares at P1 per share.
Arthaland said the preferred shares would be redeemable and would have features prescribed by the board of directors.
The capital increase is intended as fund raising activity in anticipation of projects in the pipeline and as working capital.
Arthaland said wholly-owned subsidiary Cazneau Inc. would acquire an 8.1821-hectare property in Biñan, Laguna for P306.82 million from YCLA Sugar Development Corp. and South Industrial Facilities Inc.
The property firm also acquired a prime property along Salinas Drive in Cebu City last year.
Arthaland said it planned to develop a world-class green office building within the property that would provide at least 51,000 square meters of high-grade space to the local market under the first phase.
Arthaland’s flagship residential project is Arya Residences, a two-tower boutique condominium project in McKinley Parkway, Bonifacio Global City.
It is constructing a second project, Arthaland Century Pacific Tower, at the corner of 5th Avenue and 30th Street in BGC, which is set to be completed by the third quarter of 2017.
Arthaland is a publicly listed company whose major shareholder is Century Pacific Group Holdings Inc. of the Po family.
CPGHI is the parent company of Century Pacific Food Inc., the largest player in the Philippine canned food industry.
Share price of Arthaland gained P0.20 Thursday to close at P0.29.