Property developer Sta. Lucia Land Inc. (SLI) has set its sights on raising as much as P9.87 billion from the sale of additional common shares, according to the registration statement the company filed with the Securities and Exchange Commission (SEC).
In its prospectus, the company, whose developments are mostly in the second- or third-tier municipalities, said it plans to sell some 2.5 billion common shares at an offer price of P2.38 to P3.29 per share, with an overallotment option of up to 500 million common shares.
Sta. Lucia’s shares were last traded at P3.05 apiece.
China Bank Capital Corp. is the follow-on offering’s sole issue manager, lead underwriter and sole bookrunner.
The company will issue up to 3 billion in new shares from its authorized and unissued capital stock by way of a primary offer.
Upon completion of the offer, assuming the over-allotment option is fully exercised, the total outstanding shares of the company shall be up to 11.19 billion common shares, and the offer shares will comprise up to 26.79 percent of the outstanding capital stock.
Assuming it sold the shares at P3.29 apiece with the over-allotment option exercised, the company said it would spend some P5.57 billion or more than half of the total proceeds for its capital expenditures for the ongoing projects, P3 billion to pay for its short-term debts, P500 million for landbanking and P477.65 million for general corporate purposes.
“Aligned with the company’s growth objectives, SLI continues to pursue real estate deals which can be developed into future residential and commercial projects. The company’s strategy for development is to focus on provincial areas that are largely ignored and under-served by its bigger competitors whose projects have, until recently, been concentrated in Metro Manila which is already congested and near saturation,” it said.
Sta. Lucia is present in 11 regions across the country.
“The company believes that sustained growth will come from the provinces and major cities outside of Metro Manila and have therefore prioritized establishing its presence there. The company believes that its expertise and knowledge in these areas will prove significant as it continues to expand its property footprint in these largely under-served areas.”