Wednesday, 07 October 2009 00:00 [ manilatimes.net ]
THE Securities and Exchange Commission (SEC) has exempted from registration the stock rights offering of SM Development Corp. (SMDC). The 1.375 billion shares “shall be offered for sale exclusively to existing stockholders,” thus the exemption.
The SM group’s mid-property unit had said that proceeds from the share sale would be used to finance its land banking activity.
The company approved last month a stock rights offering, which is seen to generate about P5 billion in fresh funds.
“The rights issue [is] intended to carry out [the company’s] growth initiative through landbanking and for other general corporate purposes,” the property developer said.
Rogelio Cabunag, SMDC president earlier said the company remains optimistic about the outlook of the local real estate sector.
In the first six months of the year, SMDC’s profits jumped to P1 billion from P10.3 million in the same period last year.
Real estate income for the period surged 104 percent to P776 million, while revenues amounted to P2.6 billion, an 85-percent increase year on year.
“We expect a robust growth for the rest of the year as we are preparing to launch more projects,” Cabuñag said.
Revenues from real estate operations during the six-month period increased 31 percent to P2.3 billion from P1.8 billion last year.
The company said it pre-sold 32 percent more in residential units at 1,771 worth P4.1 billion.
Chino S. Leyco
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