Philippine Estates Corp. on Monday said the Philippine Stock Exchange (PSE) has approved the company’s application for the listing of some 1.44 billion in common rights shares to cover its stock rights offering (SRO).
In its disclosure, the company said it is selling 1.44 billion common shares to existing stockholders as of December 2 at P1 apiece.
The said shares will be listed on the main board of the PSE. Its shares closed on Monday at P0.54 apiece, up by 17 percent from its previous close.
“The net proceeds from the rights offer will be used for the acquisition of land properties for the company’s pipeline of projects and the remaining balance to be used for general corporate purposes,” the company said in its preliminary prospectus.
The company said it will use some P957 million of the proceeds for land acquisition and P466 million for general corporate purposes.
The rights shares, which will be issued out of its unissued capital stock, will represent half of the issued and outstanding common shares of the company after the rights offer.
The company’s board in March approved the said stock rights offer. It was re-approved in June to comply with its application for registration.
The company offers two options for the payment of the SRO–full payment upon submission of the application and installment basis, where the initial payment of 25 percent of the subscription amount is paid upon submission of the application with the balance to be paid on or before October 31, 2022.
Abacus Capital and Investment Corp. was picked as the deal’s issue manager and underwriter.
The rights offer period will start on December 6 through December 13.