Mindanao-based property developer A Brown Company Inc. (ABCI) said Wednesday it obtained the Securities and Exchange Commission’s (SEC) approval for its planned P1.5-billion preferred shares offering.
ABCI said in a disclosure to the stock exchange the corporate regulator approved its offering of up to 10 million preferred shares—Series B and C priced at P100 per share—with an oversubscription option for another 5 million preferred shares.
The preferred shares, which are cumulative, non-voting, non-participating, non-convertible and redeemable, will be issued as second tranche from the company’s shelf registration of 50 million preferred shares.
ABCI said it would use the net proceeds from the fund-raising activity to support the development of its pipeline residential projects in Mindanao and Luzon, land banking initiatives and other general corporate purposes.
The preferred shares offering is still subject to the Philippine Stock Exchange’s approval.
PNB Capital and Investment Corp. was tapped as the sole issue manager, lead underwriter and sole bookrunner for the transaction.
ABCI’s first preferred shares offering in 2021 was 1.33x oversubscribed and raised a total of P1.33 billion.
The group said its reservations sales steadily increased over the past three years, with 2022 sales reaching P2.62 billion as its land banking also expanded from 293 hectares to 552 hectares.
Its electron-beam and cold storage facility in Tanay, Rizal, which was partially funded by the proceeds from the 2021 offering, is set to be completed in March and would contribute significantly to earnings starting this year.