LISTED real-estate development company A Brown Company Inc. (ABCI) is looking to tap the capital markets to raise up to P1.5 billion from the sale of preferred shares.
The company will use the activity to fund expansion projects, according to its most recent registration statement filed with the Securities and Exchange Commission (SEC).
In its statement sent to FrontpagePH.com, ABCI said it plans to sell 10 million preferred shares at a P100 offer price per share, with an oversubscription option of up to 5 million preferred shares under its 50 million shelf registration.
PNB Capital and Investment Corporation is the offering’s sole issue manager, lead underwriter, and sole bookrunner.
ABCI said it aims to use proceeds from the offer to support the development of pipeline real-estate projects, land banking initiatives, funding requirements of subsidiary Irradiation Solutions Inc. (ISI), and other general corporate purposes.
The company plans to allocate up to P600 million to support projects across the Philippines, particularly in Tanay, Rizal, Bukidnon, Butuan, Misamis Oriental, and Cagayan de Oro.
With a land bank of 293 hectares that can support its pipeline projects, the company intends to use up to P400 million of the proceeds from the offer to support additional land banking initiatives in the areas of Tanay, Rizal, Cagayan de Oro City, Butuan City, and Bukidnon.
ABCI is also allocating up to P350 million from the proceeds to fund subsidiary ISI’s Tanay Multipurpose Irradiation Facility Project, envisioned to be the first commercial E-Beam facility to be built in the Philippines.
The facility will ensure local products, fruits, and seafood exports meet international quality standards. With the current COVID-19 pandemic, the facility will also be used to sterilize medical-related products like Personal Protective Equipment (PPEs), gloves, gowns, face masks, dressings, and syringes.
As of March 31, 2021, ABCI has completed a total of 15 projects located in Cagayan de Oro City, Valencia City, Butuan City, and Initao, Misamis Oriental covering 4,144 units over a total developed area of over 200 hectares.
ABCI also has a total of 8 ongoing projects located in Cagayan de Oro City and Butuan City, with 17 more in the pipeline covering a total area of more than 400 hectares consisting of high-end and economic/socialized units, memorial gardens, and farm estates.
“The Company has historically targeted the full spectrum of the real-estate industry, enabling it to promptly take advantage of shifts in the demand of its customers. Hence, it is in a position to venture into pockets of growth areas as seen in the current thrust to supply the necessary housing inventory to address the backlog in the economic and socialized segments,” said ABCI, which has established itself as a premier developer for the middle-middle, upper-middle, and premium markets in Mindanao.
“ABCI has substantial investments in the utilities sector that contributes an element of stability into its revenues streams, supplementing its real-estate sales.”
Aside from real estate, ABCI has diversified its business interests toward power generation, public utilities, and agribusiness.