A Brown share offer okayed by regulator

THE Securities and Exchange Commission (SEC) has cleared A Brown Co. Inc.’s (A Brown) public offering and sale of up to P1.5 billion worth of non-voting preferred shares.

In a disclosure on Wednesday, A Brown said it had received the certificate of filing of enabling resolution, dated January 12 and issued by the SEC, in relation to its issuance of up to 15 million cumulative pesodenominated perpetual preferred shares.

The real estate developer said that the share sale represented the second tranche of its 50 million preferred shares under shelf registration.

The company’s offer supplement, issued in November 2023, stated that it planned to offer an initial 10 million preferred shares, with an oversubscription option of up to 5.0 million shares, at P100 apiece.

Net proceeds will be used to bankroll the development of the company’s pipeline of real estate projects, land banking, and for other general corporate purposes.

“In the event the oversubscription option is exercised in full, 21,735,100 preferred shares will remain under shelf registration,” the company said.

If the oversubscription is not fully exercised, A Brown said the remaining preferred shares under shelf registration “will automatically be increased by [the] principal amount of oversubscription option shares that will not be taken up or exercised.”

The company tapped PNB Capital and Investment Corp. as the sole issue manager, lead underwriter, and bookrunner for the transaction.

A Brown shares slipped by 3.03 percent to 64 centavos each on Wednesday.