THE PHILIPPINE STOCK Exchange (PSE) has approved the P3-billion planned follow-on offering (FOO) of listed property developer Arthaland Corp. to repay loans and fund a planned residential condominium project.
The FOO has a base offer consisting of up to four million cumulative, nonvoting, nonparticipating, nonconvertible, and redeemable peso-denominated Series F preferred shares and an oversubscription option of two million Series F preferred shares, both at P500 per share, the PSE said in a listing notice on Monday.
The FOO’s expected offer period is from Oct. 28 to Nov. 4, while the target listing date on the PSE is Nov. 14.
The company expects to generate P2.96 billion in net proceeds if the oversubscription option is fully exercised, of which P1 billion will be for the repayment of a short-term facility used to fund the redemption of the company’s Series C preferred shares fully drawn in June.
Another P1.14 billion will be used to partially fund an investment in a project company that will acquire and develop the property for a two-tower residential condo project called Project Teal, which has an estimated cost of P5.87 billion.
Arthaland is acquiring a 3,700-square meter residential property within the vicinity of major universities in northern Metro Manila for the project.
The project will be undertaken by Arthaland’s unit, Sotern Land Corp.
The first tower of Project Teal is scheduled for launch by the second quarter of 2025, with completion expected by 2029.
The second tower is set to be finished by 2031.
The company will also use part of the net proceeds for other loan payments as well as general corporate purposes.
Arthaland is also actively evaluating acquisition targets in the business districts of Makati, Bonifacio Global City, and other emerging cities.
BDO Capital & Investment Corp. was tapped as the sole issue manager, lead underwriter, and lead bookrunner for the planned offer.
Arthaland is a boutique real estate developer engaged in the development of residential, commercial, and leisure properties. Some of its projects include the Arya Residences, Arthaland Century Pacific Tower, Cebu Exchange, Savya Financial Center, Sevina Park, and Lucima.
On Monday, Arthaland shares fell by 1.2% or P0.005 to 41 centavos per share. — Revin Mikhael D. Ochave