Boutique property developer Arthaland Corp. plans to raise up to P3 billion from the issuance of preferred shares to repay debt.
Based on the filing with the Securities and Exchange Commission, Arthaland will offer 4 million commutative, non-participating, non-convertible and redeemable preferred shares with an oversubscription option for another 2 million shares. The preferred shares will be sold at P500 apiece.
The company hired BDO Capital and Investments Corp. as the sole issue manager and underwriter for the offering. Net proceeds will be used to redeem the P2-billion preferred shares with a dividend rate of 7.0458 percent maturing in December 2021.
A portion of the proceeds will be used to fund additional investments in Cebu Exchange and Savya Financial Center to retain office and retail units that will increase the company’s recurring income base.
The preferred shares will be listed in the main board of the Philippine Stock Exchange.