Arthaland trims preferred share offering to P2.5 billion

Arthaland Corp. has reduced the size of its planned preferred shares offering to P2.5 billion from an initial P3 billion, according to a filing with the local bourse.

The boutique property developer fixed the final offer at 3 million shares with an oversubscription option of up to 2 million shares. The company set the final dividend rate at 8.125 percent per annum for the three-year Series G preferred shares and 8.75 percent per annum for the five-year Series H shares. The shares will sell at P500 apiece.

BDO Capital & Investments Corp., the sole underwriter for the offering, said the company needed only between P1.5 billion and P2 billion.

“We didn’t want investors to feel they needed the whole amount,” BDO Capital & Investments Corp. president Eduardo Francisco said.

The offer period will run from Sept. 14 to 25. The shares will list on the Philippine Stock Exchange on Oct. 2.

Arthaland will use the proceeds to partially fund the redemption of the P3 billion Series D preferred shares, which listed in December 2021 and mature in December 2026.

The company will use internally generated cash to cover the P1.525 billion difference between the principal redemption amount and the estimated net proceeds from the base offer, as well as about P45 million in accrued dividends.

Arthaland launched two residential projects in the first half of the year: Sondris, a high-end condominium development in Makati, and the 42-story Liv North Tower, a residential project in Quezon City.

The article was originally published in Manila Standard and written by Jenniffer B. Austria.

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