MANILA, Philippines - Upscale property developer Alphaland Corp., despite facing a delisting process, took steps to comply with the required minimum public ownership requirement.
The property firm of former trade minister Roberto V. Ongpin yesterday said it raised almost P300 million as it issued 109 million new common shares to private foreign investors.
Specifically, Citadel Investments Ltd. and Detek Arculli subscribed to 10 million shares each, both paying P25 million to Al
phaland. Fine Land Ltd. bought 89 million shares worth $5 million.
“These subscriptions, representing 3.25 percent of the company’s outstanding capital stock, were made at a price of P2.50 per share,†Alphaland said, adding that none of the subscribers are related to the company or major shareholders.
“The subscriptions have resulted in a cash inflow of more than P272 million to the company, which it sorely needs in order to maintain operations,†the property firm said.
Given the share sale, outstanding shares of Alphaland reached 3.359 billion common shares, with public float increasing to 11.02 percent from 8.04 percent.
The Philippine Stock Exchange (PSE) requires a 10 percent minimum public ownership for listed firms.
Alphaland said another potential investors, Goodwill Finance Services Co. Ltd., is buying 8.8 million common shares worth $500,000.
“However, we were informed that it will remit payment only upon the lifting of the trading suspension,†Alphaland said.
Last month, the PSE announced that it initiated the delisting process for Alphaland as a maximum penalty for violating disclosure requirements. Delisting is the maximum penalty imposed that can be imposed by the PSE on an erring company.
“Where we are is essentially, there’s an appeals process. We have to make it run its course,†said PSE president and CEO Hans B. Sicat said.
Sicat said the PSE is continuing the delisting process for Alphaland.
PSE earlier said the violations were committed in the course of the disclosure of the alleged simulated sale of Alphaland shares between Ashmore Investment Management Ltd./Alphaland Holdings (Singapore) Pte. Ltd. and Credit Suisse (Singapore) Ltd; cases involving the company and its state of financial distress; and its representation of its conduct of a stock rights offering which it later admitted as a minority Offering.
Early in January, Alphaland completed a capital call targeted at owners of more than 10 percent shares via a private placement. It then raised P270 million through a share sale exclusively targeted for minority stockholders.
Alphaland, whose shares have been suspended from trading on Jan. 20, is entitled to a delisting hearing under the PSE’s Rules on Delisting.
The property firm, which is into high-end leisure developments catering to the affluent, is a joint venture between the Ashmore Group and Ongpin’s RVO Capital Ventures.
Alphaland is the company behind the P2-billion Alphaland Marina Club and the 32-hectare Bay City development along Manila Bay, the P4-billion Balesin Island Club in Quezon province, and the Alphaland City Club in the Makati central business district.