MANILA — Listed mass-housing developer 8990 Holdings Inc. on Friday rolled out PHP5-billion preferred shares in line with its bid to generate fresh funds for expansion.
The preferred share issuance is cumulative, non-voting, non-participating, non-convertible, redeemable peso-denominated with an issue size of 50 million shares at PHP100 per share.
“So far, we are extremely happy with the market’s response. Our goal for 2017 is to strengthen our balance sheet. The PHP5-billion preferred shares issuance is part of our strategy to achieve this, allowing us to focus more on expanding our portfolio of mass housing projects across the country,” said Chief Operating Officer Willie Uy.
The housing developer has completed a total of 52 projects to-date and is set to launch eight more in 2017.
The PHP5-billion offering is the first tranche of its 100 million preferred shares shelf registration with the Securities and Exchange Commission.
The Philippine Stock Exchange (PSE) approved only the first tranche offer of up to 50 million offer shares that are under shelf registration.
The offer period ends on Nov. 23 and the listing date on the PSE is Dec. 1.
8990 has the option to redeem the preferred shares in whole on the fifth anniversary of its listing date. Otherwise, a step-up rate will replace the current dividend rate on the fifth anniversary of its listing date unless the preferred shares are redeemed by the company. (PNA)