The Securities and Exchange Commission has approved a plan by low-cost residential developer 8990 Holdings Inc. to sell as much as P13 billion worth of shares through a follow-on offering.
8890 Holdings, which backdoor-listed on the local stock exchange through IP Converge Data Center and now trades under the ticker HOUSE, has obtained clearance from the SEC to offer as much as 1.03 billion common shares at a maximum price of P12.70 each.
The offering will consist of 517.31 million primary common shares, out of which P6.35 billion in net proceeds are expected for the company’s expansion, based on documents from the SEC. Existing shareholders will also sell as much as 517.31 million shares, including 134.95 million shares set aside for overallotment option.
The shareholders who will unload some of their shares are Luis Yu Jr. (199.29 million shares), Mariano Martinez Jr. (172.91 million shares) and Januario Jesus Gregorio Atencio III (10.16 million shares). Yu is a director, Martinez is the company chair while Atencio is the president of the company.
If it completes the sale of 1.03 billion primary and secondary shares, about 20 percent of the company’s outstanding capital stock will be held by the public after the offering.
SB Capital Investment Corp. is the issue manager and lead underwriter for the offering.
The company intends to start the offering on Jan. 30 until Feb. 14 this year. Targeted listing date on the Philippine Stock Exchange, subject to approval by the local bourse and market conditions, is on Feb. 21.
Of the P6.35 billion net proceeds from the primary offering portion, 8990 Holdings intends to allot P2.5 billion for landbanking, P2.5 billion for working capital requirements and P1.4 billion for general corporate purposes. Doris C. Dumlao