A BROWN Co., Inc. (ABCI) announced on Monday that it had successfully raised P1.44 billion through a follow-on offering as part of its fundraising efforts.
The offering involved Series B and C preferred shares, which were subsequently listed on the Philippine Stock Exchange, ABCI said in a regulatory filing.
The offering was oversubscribed by 1.44 times the base amount, it also said.
The company issued a total of 7,431,750 Series B preferred shares and 6,941,000 Series C preferred shares, which were listed on Feb. 23.
ABCI’s offering originally comprised 10 million preferred shares, including Series B and C, priced at P100 apiece, with an oversubscription option for an additional five million shares.
The proceeds from the offer would be used for the development of ABCI’s residential projects in Luzon and Mindanao, land banking efforts, and general corporate purposes, the company said.
“The Series B and Series C preferred shares have a dividend rate of 8.25% and 8.75% per annum, respectively. The offering was well received by the investor community allowing the dividend yields to be priced at the low end of the range,” it added.
The company tapped PNB Capital and Investment Corp. as the lone issue manager and bookrunner as well as the lead underwriter for the offering.
For the first nine months, A Brown logged a 21% increase in its net income to P484.5 million as its revenue climbed by 24% to P1.1 billion.
The completion of the company’s electron beam (e-beam) and cold storage facility in Tanay, Rizal is slated for next month, with anticipated earnings contributions this year. E-beam technology is an economical option for commercial sterilization methods and is used in various agricultural products and medical devices.
ABCI is a Mindanao-based property developer that has various interests in other sectors such as power generation, public utilities, and agribusiness.
On Monday, ABCI shares rose by 1.52% or one centavo to 67 centavos apiece. — Revin Mikhael D. Ochave
