The Philippine Stock Exchange approved the P1.5-billion maiden preferred shares offering A Brown Company Inc.
Based on the offer terms approved by the PSE, A Brown will sell up to 15 million preferred shares at P100 apiece.
The preferred shares, which will carry an initial dividend rate of 7 percent per annum, will be issued as the first tranche of its 50 million shares shelf registration program.
The public offer will run from Nov. 15 to 19, with tentative listing scheduled on Nov. 29. The preferred shares will be listed on the main board of the PSE under the new ticker symbol “BRNP”.
Net proceeds will be used to support development of pipeline of real estate projects in key cities in Luzon and Mindanao and strategic land banking initiatives in Tanay, Rizal; Cagayan de Oro City; Butuan City; and Bukidnon.
“This fund-raising activity allows us to maximize opportunities in our real estate business alongside expansion in new growth industries. In recent years, A Brown has focused on strengthening our balance sheet with an increasing asset and equity base and low reliance on debt,” A Brown president and chief executive Robertino Pizarro said.
“Tapping the capital markets through this maiden preferred shares offering will allow additional flexibility for future fund raising initiatives,” he said.
PNB Capital and Investment Corp. is the sole issue manager, lead underwriter and bookrunner for the deal.
A Brown has a track record of over 20 years in real estate development in Mindanao and pioneered the master planned mixed-use community concept in the region. With a substantial landbank of 293 hectares in marketable locations, the company said it is well-positioned for growth in Mindanao and other regions.
The share price of A Brown rose 1.2 percent Wednesday to close at P0.85.
