Listed real estate developer LFM Properties Inc. is planning to raise at least P1 billion through a stock rights offering as it gears up for expansion.
In a disclosure, the company said the final details of the rights offer—including the entitlement ratio, ex-rights and record dates, and the offer period—will be determined after shareholders approve key resolutions, including the increase in authorized capital stock to P5 billion from P400 million, and the sale of shares via the rights offering.
These matters will be taken up in a special stockholders’ meeting scheduled for October 15.
Proceeds from the offering will be used primarily to support the capital increase, which is necessary to fund the company’s future property development projects.
LFM’s board has also approved a change in par value, raising it to P1 per share from one centavo, signaling a restructuring of the company’s share capital ahead of the offer.
LFM Properties currently owns three commercial buildings in Makati City—Liberty Plaza Building, Liberty Center, and Liberty Building. In addition, it holds a vacant commercial lot in Ortigas, Pasig City, which is presently being leased out as a staging area for construction.
The planned capital raise marks a major move for the company as it positions itself for a more active role in the real estate development space.
