Century Properties offering OK’d by PSE

THE Philippine Stock Exchange Inc. (PSE) on Friday cleared Century Properties Group Inc.’s (CPG) follow-on public offering of up to 40 million Series B preferred shares at P100 apiece.

In a notice, the PSE said approval of the listing of the said shares was subject to CPG’s compliance with the post-approval conditions and requirements of the bourse, the Securities and Exchange Commission (SEC), and other regulatory agencies.

“The same is without prejudice to any subsequent action that the exchange may take in relation to the company’s compliance with applicable rules of the exchange,” it added.

Based on preliminary terms, the base offer consists of 20 million Series B preferred shares, with an oversubscription option of up to 20 million preferred shares.

If the oversubscription option were to be fully exercised, CPG would raise some P4 billion from the issuance, P1 billion or 20 percent lower than the target announced in October last year.

The offer period begins February 6 and will end on February 13, while the listing date is set for February 22. Once listed, the shares will trade under the symbol “CPGPB.”

In a separate notice, the PSE said that CPG has advised the bourse that the initial dividend rate of CPGPB would be 7.5432 percent.

Proceeds of the issuance will be used for the partial repayment of CPG’s fixed-rate three-year bonds issued in March 2021 as well as for strategic land banking, capital expenditures and other general corporate obligations.

“The net proceeds of the offer will either be infused as equity into or lent to CPG’s respective operating subsidiaries,” the term sheet states.

China Bank Capital Corp. is the sole issue manager, lead underwriter and bookrunner for the transaction.

Last month, CPG said it had received a pre-effective letter from the SEC “favorably considering” the company’s share offer application.

CPG shares on Friday rose by 1.85 percent to close at 27.5 centavos each.