THE Securities and Exchange Commission (SEC) has approved Arthaland Corp.’s P3-billion shelf registration of preferred shares, most of which will be offered immediately.
The property-development company of the Po family said in its registration statement, it will initially offer a total of P2 billion worth of preferred shares, half of which is oversubscription option.
In total, Arthaland will offer 30,000 in preferred shares, two-thirds of which will be offered immediately, and the rest are for shelf registration. The shares, which are cumulative, nonvoting, nonparticipating, nonconvertible, redeemable peso-denominated, are priced at P100 apiece.
The company said of the proceeds of the preferred shares offering, it will allot P822.4 million for the South of Metro Manila project, which involves acquisition of a 3,000-square-meter property in southern Metro Manila and the development of a 30,000-square-meter of net leasable space. It did not specify the location of the property.
Meanwhile, the company, through its unit Cazneau Inc., will spend P458.8 million from the proceeds of its offering to partially fund the development of its 8.2-hectare project in Barangay Biñan in Biñan, Laguna.
“The land for the site of the project was acquired by the company on September 8, 2016, from South Industrial Facilities Inc. and YCLA Sugar Development Corp.,” the company said.
The project will be the company’s first campus-type residential community project and will feature a mix of low-rise residential and retail buildings, as well as townhomes, that will cater to the student, faculty and other employees of a school near the area.
The company said it plans to disburse the fund by the fourth quarter.
The company will allocate P371.6 million of the proceeds to fund the acquisition of a 2,000-sq m property in the Makati Central Business District.
It will also spend P200 million for the partial payment of its outstanding loans maturing during the second quarter next year
Other proceeds will be allocated for its Cebu Exchange Project at P53.6 million and P65.3 million for other corporate purposes.
The company said it submitted the registration statement to the SEC on September 14 and its application to list it to the Philippine Stock Exchange on September 14.
During its special stockholders’ meeting in September, shareholders approved the proposal to amend its authorized capital stock to increase it by P50 million to P2.99 billion, through the creation of 50 million preferred shares with a par value of P1 per share.
Its authorized capital stock is composed of 16.36 billion common shares with a par value of 18 centavos and 50 million preferred shares.
