A. Brown Company Inc. is pricing the initial dividend rate of its P5 -billion preferred shares sale at 7 percent per annum.
If not redeemed on the fifth year, the dividend will then be adjusted to either 9.75 percent or the 10-year average of a 10-year fixed-income security and a premium of 5 percentage points.
The company is looking to sell an initial 10 million preferred shares and another 5 million covering the oversubscription option. preferred shares, at an offer price of P100 per share, it said it will use to fund project expansions.
PNB Capital and Investment Corp. will serve as sole issue manager, lead underwriter, and sole bookrunner of the share sale.
A. Brown said it plans to use the proceeds of the first tranche 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.
About P600 million will be used to support projects in Tanay, Rizal, Bukidnon, Butuan, Misamis Oriental and Cagayan de Oro;
P400 million for land banking purposes for the company’s real estate business, eyeing properties in Tanay, Rizal; Cagayan de Oro City; Butuan City and Bukidnon and; P350 million for the development of the first commercial E-Beam facility in the Philippines, being pursued by ISI. “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 PPEs, gloves, gowns, face masks, dressings, and syringes,” it said.
