A Brown nets P1.4B from share offering

REAL estate developer A Brown Co. Inc. (A Brown) has wrapped up the second tranche of its 50 million preferred shares shelf registration, successfully raising P1.44 billion.

The Mindanao-based developer offered 10 million nonvoting Series B and Series C preferred shares, plus an oversubscription option of up to 5.0 million preferred shares, at a price of P100 apiece.

The share sale, which was oversubscribed by 1.44 times, was the “largest capital raising exercise of the company to date,” A Brown said in a filing on monday.

“The offering was well received by the investor community, allowing the dividend yields to be priced at the low end of the range,” it added, noting that the Series B and Series C preferred shares would carry a dividend rate of 8.25 and 8.75 percent per annum, respectively.

The peso-denominated perpetual preferred shares were offered from February 12 to 16 and were listed on the Philippine Stock Exchange (PSE) last Friday.

Proceeds from the offering will bankroll the development of A Brown’s pipeline residential projects in Luzon and Mindanao, its land banking initiatives, and for other general corporate purposes.

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

The company had successfully raised P1.33 billion in 2021 from an oversubscribed offering of an aggregate of 15 million preferred shares, also priced at P100 each.

A Brown focuses on horizontal real estate development but has SINCE DIVERSIfiED INTO THE POWER generation, public utilities and agribusiness industries.

The company’s shares slipped 1.52 percent to 67 centavos each on Monday amid a 0.31 percent downturn for the benchmark PSE index.