A. Brown Co. Inc., a listed company with real estate and energy investments mostly in Mindanao, on Monday started selling preferred shares to raise as much as P1.5 billion for real estate projects, land acquisition, and for other general corporate purposes.
The company is offering 10 million series B and series C preferred shares at P100 each, plus 5 million more preferred shares for oversubscription. The offer period ends on Friday, 16 February.
Series B preferred shares carry a dividend rate of 8.25 percent per annum while series C pays dividend of 8.75 percent. The preferred shares will be listed on the Philippine Stock Exchange on 23 February.
PNB Capital and Investment Corp. is sole issue manager, lead underwriter, and sole bookrunner.
A. Brown is primarily engaged in the business of real estate development in Cagayan de Oro City and Initao in Misamis Oriental, Valencia City, Bukidnon, Butuan City in Agusan del Norte, and Cainta and Tanay in Rizal.
The estimated cost of developing its pipeline projects is P7.5 billion. It plans to use up to P1 billion of the proceeds to support the development of several real estate projects across the country. The balance of P6.5 billion in development cost will be sourced from internally generated funds and other funding options such as drawing on available credit lines from local banks, project financing, and tapping the capital markets, including the shelf registration of the preferred shares in the event that the actual development costs require additional
capital.
