LISTED firm A Brown Co Inc. has filed its registration statement with the Securities and Exchange Commission for a shelf registration of 50 million non-voting perpetual preferred shares.
The company said it will initially offer some 15 million in preferred shares at an offer price of P100 apiece, or proceeds of P1.5 billion.
The rest of the preferred shares will be offered within three years.
PNB Capital and Investment Corp. is the offering’s sole issue manager, lead underwriter and bookrunner.
A Brown said it aims to use proceeds from the initial offering to fund the development of pipeline real estate projects, land banking initiatives, funding requirements of subsidiary Irradiation Solutions Inc. and other general corporate purposes.
The dividends of series A preferred shares shall be at the fixed rate of between 6.5 percent and 7 percent per year.
The company said it will start the offer period on October 11 through October 19, and will be listed at the Philippine Stock Exchange on October 28.
Some P600 million of the proceeds will be used to fund its pipeline real-estate projects including those in Tanay in Rizal, Bukidnon, Butuan, Misamis Oriental and Cagayan de Oro.
With a land bank of 293 hectares that can support its pipeline projects, the company intends to use up to P400 million of the proceeds from the offer to support additional land banking initiatives in the areas of Tanay, Rizal, Cagayan de Oro City, Butuan City, and Bukidnon.
Some P350 million will be used to fund its unit Irradiation Solutions Inc., which has a Tanay Multipurpose Irradiation Facility Project, envisioned to be the first commercial E-Beam facility to be built in the Philippines. The facility will ensure local products, fruits and seafood exports meet international quality standards.
With the current pandemic, the facility will also be used to sterilize medical-related products like PPEs, gloves, gowns, face masks, dressings and syringes.
As of end March, the company has completed a total of 15 projects located in Cagayan de Oro City, Valencia City, Butuan City and Initao, Misamis Oriental covering 4,144 units over a total developed area of over 200 hectares.
The company also has a total of eight ongoing projects located in Cagayan de Oro City and Butuan City, with 17 more in the pipeline covering a total area of more than 400 hectares consisting of high-end and economic, socialized units, memorial gardens and farm estates.
“The company has historically targeted the full spectrum of the real-estate industry, enabling it to promptly take advantage of shifts in the demand of its customers. Hence, it is in a position to venture into pockets of growth areas as seen in the current thrust to supply the necessary housing inventory to address the backlog in the economic and socialized segments,” the company said.
The company has established itself as a premier developer for the middle-middle, upper-middle and premium markets in Mindanao.
“(The company) has substantial investments in the utilities sector that contributes an element of stability into its revenues streams, supplementing its real estate sales.”
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