A Brown Co. Inc. said it received an overwhelming interest from investors on its P1.5 billion preferred shares sale that the fundraising activity is 1.44x oversubscribed.
The Cagayan do Oro-based group closed the share sale on February 23.
A total of 10 million preferred shares, comprising Series B and C, were sold at an offer price of P100 per share, with an additional 5 million to cover the oversubscription option.
A Brown pegged the dividend yield of the shares at 8.25 percent for the Series B and 8.75 percent for the Series C.
The company said the offer was “well received by the investor community allowing the dividend yields to be priced at the lower end of the range.”
“The proceeds from this fundraising initiative will be dedicated to the development of residential projects in Mindanao and Luzon, land banking efforts, and other general corporate purposes,” the company said in a statement.
PNB Capital and Investment Corp. served as the sole issue manager, lead underwriter and sole bookrunner for the share sale.
A Brown is a property developer with a diversified portfolio covering residential and commercial real estate projects. Beyond real estate, it also ventured into power generation, public utilities and agribusiness. – Ruelle Castro
