A Brown to offer preferred shares worth up to P1.5B

LISTED REAL estate developer A Brown Co. is set to launch the second tranche of its preferred shares worth up to P1.5 billion to raise funds for its projects.

The company has filed an updated registration statement with the Securities and Exchange Commission for the issuance of its preferred shares, it said in a media release on Thursday.

Proceeds from the preferred shares offering will fund the company’s residential project development, the company said, adding that it is planning to offer the shares in two series which will be listed on the Philippine Stock Exchange by January 2024.

The proposed offering is made up of 10 million preferred shares — Series B and C priced at P100 per share — with an oversubscription option of up to five million preferred shares from its shelf registration of 50 million preferred shares.

“Among our high-priority developments are Coral Bay Suites and Alexandrite Columns, both of which are condominiums with resort amenities and scenic views,” said Robertino E. Pizarro, president and chief executive officer of A Brown.

The company said proceeds from the offering will also fund its pipeline real estate projects in Mindanao and Luzon, some land-banking initiatives, and for general corporate purposes.

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

In 2021, the company issued its first preferred shares, which raised a total of P1.33 billion. It said reservation sales have been increasing in the past three years, hitting P2.62 billion last year.

A Brown said its land banking increased to 552 hectares from 293 hectares. Its E-Beam and Cold Storage Facility in Tanay, Rizal is at 90% completion and is expected to contribute to the company’s profit by 2024.

At the local bourse on Thursday, shares in the company closed one centavo or 1.43% higher at P0.71 apiece. — Ashley Erika O. Jose

Neil Banzuelo

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