Arthaland cleared on P3 billion follow-on offer

MANILA, Philippines — The Philippine Stock Exchange (PSE) has given listed real estate developer Arthaland Corp. the green light to raise as much as P3 billion from the issuance of preferred shares.

The PSE approved the application of Arthaland for the follow-on offering of up to six million Series F preferred shares at a price of P500 apiece.

The issuance consists of a firm offer of up to four million Series F preferred shares and an oversubscription option of an additional two million preferred shares.

BDO Capital and Investment Corp. has been tapped as the sole issue manager, lead underwriter and lead bookrunner.

The offer period will run from Oct, 28 to Nov. 4.

Listing of the shares on the main board of the PSE is eyed on Nov. 14.

A portion of the proceeds will be used by the Arthaland to repay a short-term loan from BDO Unibank Inc., proceeds of which were used to redeem Series C preferred shares last June.

The company will also use a portion of the proceeds to fund the required investment into a project company that will acquire and develop the property for Project Teal.

Arthaland, through its wholly-owned subsidiary Sotern Land Corp. (SLC), is acquiring a 3,700-square meter residential property in northern Metro Manila.