The Philippine Stock Exchange approved the P3-billion preferred shares offering of boutique property developer Arthaland Corp.
Arthaland, the Po family’s real estate development arm, plans to sell at least 4 million shares, with an oversubscription option for another 2 million shares at P500 apiece.
The company engaged BDO Capital & Investment Corp. as the sole issue manager, lead underwriter and lead book runner for the offering. The shares will be listed on the PSE under trading symbol “ALCP”.
Offer period will run from Oct. 28 to Nov. 4, 2024.
The company said it would use the net proceeds from the fund-raising activity to repay debt, finance development of upcoming projects and general corporate purposes.
Arthaland said it allocated P1.4 billion to repay debt with BDO Unibank Inc. It will also spend P1.14 billion to fund the investment for a residential project in Metro Manila.
Arthaland said it is acquiring a 3,700-square-meter residential lot in northern Metro Manila. The project is envisioned to be sustainable two-tower, high-rise residential development. The first tower is targeted for launch by the second quarter 2025.
The company is also negotiating for the acquisition of a five-hectare property in a prime city center in southern Philippines via a joint venture partnership.
The property firm is also actively evaluating acquisition targets in the business districts of Makati, Bonifacio Global City and other emerging cities.
The company earlier said it was focusing more on residential projects instead of office projects as it monitors the impact of remote work on office space demand.
Net income of Arthaland fell 76 percent in the second quarter of 2024 to P135.5 million from P562 million in the same period last year on lower revenues.
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