Century Properties raising funds via preferred shares offering | Inquirer Business
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Century Properties raising funds via preferred shares offering

/ 04:03 AM December 16, 2019

Antonio family-led Century Properties Group Inc. (CPG) is raising as much as P3 billion from an offering of preferred shares with a tenor of 3.5 years at an interest rate of 6.7177 a year. The offering will begin today (Dec. 16)—following receipt of approval from the Securities and Exchange Commission and the Philippine Stock Exchange (PSE)—and run until Jan. 3, 2020.CPG is offering at least 20 million preferred shares at P100 each, with an option to upsize by 10 million more shares.

Based on its prospectus, net proceeds from the offer will either be infused as equity into or lent to CPG’s operating subsidiaries.

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CPG intends to cover capital expenditures of Century City Development Corp., mainly for its office developments in Century City, which will rise on a 2,000-square meter area. Working capital will also be provided for the leasing projects of Century Limitless Corp., the unit in charge of Acqua Private Residences.

China Bank Capital Corp. serves as the lead underwriter for this offering.

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The preferred shares will be listed on the PSE tentatively on Jan.10, 2020.

CPG has the incentive to redeem the preferred shares after 3.5 years, or otherwise pay a higher price.

If the shares are not redeemed by the sixth month after the third year of listing, the dividend rate will be adjusted to either the prevailing dividend rate or the dividend rate equal to the step-up benchmark rate plus 687.5 basis points.CPG posted P1.2 billion in profit in the first nine months, up 81 percent year-on-year. —Doris Dumlao-Abadilla INQ

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TAGS: Business, Century Properties Group Inc. (CPG)
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