8990 Holdings starts sale of Series A preferred shares

8990 Holdings Inc, the listed mass housing developer, has commenced the sale of its Series A Preferred Shares offering and is set to list this on the Philippine Stock Exchange on Dec. 1.

With a quarterly dividend rate of 6.02 per annum, 8990 is offering the preferred shares from Nov. 17 to Nov. 23.

The preferred share issuance is cumulative, nonvoting, non-participating, non convertible, redeemable Peso-denominated with an issue size of 0 million shares at P100 per share.

8990 has the option to redeem the preferred shares in whole on the fifth anniver- sary of its listing date.

Otherwise, a step-up rate will replace the current dividend rate on the fifth anniversary of its listing date, unless the preferred shares are redeemed by the company.

Proceeds would be used to expand the company’s mass housing portfolio, according to 8990 chief operating officer Willie Uy.

“So far, we are extremely happy with the market’s response. Our goal for 2017 is to strengthen our balance sheet. The P billion preferred shares issuance is part of our strategy to achieve this, allowing us to focus more on expanding our portfolio of mass housing projects across the country,” Uy said.

The P billion offering is the first tranche of its 100 million preferred shares shelf registration with the Securities and Exchange Commission.

The shelf registration is valid for three years. The PSE approved the company’s application for the listing of the offer shares on the main board of the PSE on Nov. 8.

The PSE approval does not cover the entire 100 million preferred shares that are under shelf registration, but covers only the first tranche offer of up to 0 million offer shares.

The company tapped China Bank Capital as the sole issue manager, lead underwriter and book runner for 8990’s initial tranche of preferred shares.