Boutique property developer Arthaland Corp. yesterday started a P1-billion offering of preferred shares, proceeds from which will fund its land bank expansion.
Arthaland is offering 10 million preferred shares at P100 each until June 21 this year. These are cumulative, nonvoting, nonconvertible, redeemable peso-denominated preferred shares.
“We are listing the remaining P1 billion from the P3 billion worth of perpetual preferred shares issue in the fourth quarter of 2016. As you would recall, P2 billion was listed in December 2016,” Arthaland executive vice president and treasurer Leonardo Arthur Po said yesterday.
“We will use the proceeds mainly for land acquisition as outlined in our five-year plan for five times growth of our development portfolio,” he added.
In 2016 when it raised P2 billion from an initial offering of preferred shares, Arthaland mapped out a P30-billion, five-year expansion program that would diversify its earnings stream and expand its geographical footprint.
The original dividend rate was fixed at 6.9277 percent a year. Unless redeemed on the fifth year, the dividend rate could be adjusted depending on whether the market rate has gone higher than the original dividend rate.
BDO Capital and Investment Corp. is mandated as the sole manager, book runner and underwriter of the issuance.
The preferred shares will be issued and listed on the Philippine Stock Exchange on June 27.
Application is for a minimum of 500 shares and in multiples of 100 shares thereafter.
The firm started with an upscale high-rise condominium project in BGC, followed by other high-rise premium office developments.—DORIS DUMLAO-ABADILLA