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CPG cuts preferred share offering to P4 B

The Philippine Stock Exchange (PSE) has approved the follow-on offering and listing of high-end real estate developer Century Properties Group Inc.’s (CPG) Series B Preferred Shares worth up to P4 billion, but it is lower than the initially planned P5 billion.

PSE documents showed that the Antonio family-controlled CPG is offering 40 million preferred shares at an offer price of P100 per share consisting of a base offering of 20 million shares and an oversubscription option of another 20 million shares.

Last January, the Securities and Exchange Commission (SEC) had approved the registration of these preferred shares consisting of a base offering of 30 million shares and an oversubscription of 20 million shares.

“The Exchange’s approval of the listing of the Offer Shares is subject to the Company’s compliance with any and all of the post-approval conditions and requirements of the Exchange, the Securities and Exchange Commission and other relevant regulatory bodies,” the PSE said. 

The follow-on public offering will start of Feb. 6, 2024 and end on Feb. 13 with the listing tentatively set for Feb. 22.

Last July, CPGI had fully redeemed its P3 billion Cumulative, Non-Voting, Non-Convertible, Non-Participating, Redeemable Peso-denominated Preferred Shares issued and listed three years ago.

The Preferred Shares were redeemed at its redemption price of P100 per share, pursuant to the terms set out in the prospectus dated Dec. 12, 2019.

“The full redemption of the Preferred Shares is part of our strategic program that is anchored on prudent financial management and debt reduction with the goal of strengthening our balance sheet to support our growth expansion,” said CPG Chief Finance Officer Ponciano S. Carreon, Jr.

He added that, “we continue to see an active and liquid domestic capital markets and we intend to tap the same if needed for our capital funding purposes.”

CPG’s outstanding total debt as of the end of December 2022 was down to P17.3 billion, from P18.4 billion the previous year due to repayment of P1.1 billion short-term and long-term debt.

In April 2022, CPG also redeemed its P3 billion fixed-rate retail bonds.

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The article was originally published in Manila Bulletin and written by James A. Loyola.

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