LISTED property developer Arthaland Corp. has secured the approval of the Securities and Exchange Commission (SEC) for its planned P3-billion follow-on offering (FOO).
The SEC issued the order rendering the registration statement effective, as well as the certificate of permit to offer securities for sale, on Oct. 25, Arthaland said in a regulatory filing on Monday.
The FOO has a base offer consisting of up to four million cumulative, nonvoting, nonparticipating, nonconvertible, and redeemable peso-denominated Series F preferred shares and an oversubscription option of two million Series F preferred shares, both at P500 apiece.
The tentative offer period is from Oct. 28 to Nov. 4, while the target listing date on the PSE is Nov. 14, based on the company’s prospectus dated Oct. 23.
Arthaland recently set the FOO’s initial dividend rate at 7.3260% per annum.
The company is looking to generate P2.96 billion in net proceeds if the oversubscription option is fully exercised.
Of the total, the company will earmark P1 billion for the repayment of a short-term facility used to fund the redemption of the company’s Series C preferred shares fully drawn in June.
Another P1.14 billion will partially fund an investment into a project company tasked with the development of a two-tower residential condo project called Project Teal, with an estimated cost of P5.87 billion. The project will be undertaken by Arthaland unit Sotern Land Corp.
The project will be on a 3,700-square-meter residential property within the vicinity of major universities in northern Metro Manila.
The first tower of Project Teal is set for launch by the second quarter of 2025, with completion expected by 2029. The second tower is set to be finished by 2031.
The company will also use part of the net proceeds for other loan payments as well as general corporate purposes.
Arthaland tapped BDO Capital & Investment Corp. as the sole issue manager, lead underwriter, and lead bookrunner for the planned offer.
On Monday, Arthaland stocks were unchanged at 42 centavos. — Revin Mikhael D. Ochave