By Jenniffer B. Austria | Apr. 21,
2014 at 12:01am [ manilastandardtoday.com ]
The Securities and Exchange Commission
approved the P17.5-billion, follow-on offering of mass housing developer 8990
Holdings Inc.
Documents filed with the corporate
regulator showed 8990 Holdings would sell up to 1.379 billion shares,
consisting of 862.186 million common shares and 382.360 million secondary
shares, with an overallotment option of 134.950 shares at P12.70 apiece.
The final offer price will be set on
April 28 while the offering period will run from April 29 to May 8. The listing date is set on May 14.
Net proceeds from the sale of primary
offer shares amounting to P10.66 billion will be used to repay existing debts,
documents showed.
“The company incurred significant
expenditures to acquire land for development, complete existing projects and
commence developments of new mass housing projects. To partially fund these
activities, the company obtained and secured financing, payment for which the
company intends to partially be funded from the net proceeds of the primary
offer,” 8990 Holdings said.
Documents showed at least 70 percent
or 871.182 million offer shares would be sold to investors overseas while 30
percent of 373.364 million shares would be sold to domestic investors.
8990 Holdings appointed UBS as the
sole global coordinator, international bookrunner and lead manager and UBS
Investments Philippines Inc. and SB Capital as domestic lead underwriters.
8990 Holdings, formerly IP Converge
Data Center Inc., operates under the brand names Deca Homes for horizontal
developments and Urban Homes for medium-rise buildings.
The company completed 16 mass housing
projects consisting of 14,000 units as of end-2013 and is currently developing
eight more projects across five cities.
The company in February acquired a
13-hectare property along Ortigas Avenue, which was funded through P2-billion
five-year loan from BDO Unibank Inc.
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