MANILA, Philippines - Upscale property developer Alphaland Corp. is planning to raise additional cash through loans and share sales.
Proceeds from the equity offering, which will also increase its public float, will bankroll the construction of two new developments, the firm said yesterday.
“In order to rectify the public ownership deficiency of the company due to the Ashmore Group misrepresentation, the board of directors authorized the management to make such number of private placements through the issuance of shares to non-related and qualified entities,†Alphaland said in a disclosure to the stock exchange. Management was authorized to sell shares at a minimum price of P2.50 each.
Alphaland, whose shares were suspended from trading since Jan. 20, currently has a public float of 5.07 percent.
“The board of directors also authorized management to secure sufficient funding, both through borrowings and equity placements either through private placements or public offerings,†Alphaland said.
Fresh capital will augment the funding for projects including the P2-billion Alphaland Marina & Country Club and residential towers, and the Alphaland Baguio Mountain Log Homes.
Early this month, Alphaland completed a P270-million share sale exclusively for minority shareholders.
Alphaland earlier said the stock rights offering will give minority shareholders a chance not to be diluted following a billion-peso capital infusion from large stakeholders early in January.
Due to time constraints, the previous capital call was made only to owners of more than 10 percent via a private placement. The transaction allowed the group of former Trade Minister Roberto V. Ongpin to secure 50.57 percent of Alphaland’s outstanding shares after London-based Ashmore Group ignored the capital call.
Alphaland, which is into high-end leisure developments catering to the affluent, is a joint venture between Ashmore Group and Ongpin’s RVO Capital Ventures.
It is the company behind the P4-billion Balesin Island Club in Quezon province and the Alphaland City Club in Makati central business district.