SEC approves Arthaland’s P3-B preferred share offer

MANILA, Philippines — The Securities and Exchange Commission (SEC) approved Arthaland Corp.’s planned preferred share offering of up to P3 billion.

The proceeds will partly fund a property project and redeem outstanding preferred shares.

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On Wednesday, the regulator said its Commission En Banc on Aug. 11 cleared Arthaland Corp.’s offer of up to four million preferred shares, with up to two million more for oversubscription.

The approval remains subject to the property developer’s compliance with certain remaining requirements.

“The preferred shares, which are cumulative, non-voting, non-participating, non-convertible and redeemable, will be offered at P500 per share,” the SEC said.

Assuming the oversubscription option is fully exercised, Arthaland expects to generate net proceeds of about P2.96 billion.

The company plans to use the proceeds for the completion of a property project, partial funding of the redemption of its outstanding Series D preferred shares and general corporate purposes.

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The offer period will be from Sept. 14 to Sept. 18 based on the latest timeline submitted to the SEC.

Arthaland is targeting the issuance and listing of the preferred shares on the main board of the Philippine Stock Exchange on Sept. 25.

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BDO Capital & Investment Corp. will serve as the sole issue manager, lead underwriter and lead bookrunner for the transaction.

The offering provides Arthaland with fresh funding while also allowing the company to refinance part of its existing preferred share obligations.

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At the maximum offer size, Arthaland would issue six million preferred shares, including the two-million-share oversubscription option.

The transaction adds to companies tapping the domestic capital market for funding this year, with Arthaland opting for preferred shares to finance its property development requirements and other corporate needs. /pai