8990 Holdings, Inc. secured board approval to launch a P5-billion preferred share offering to raise funds for its expansion program.
In a disclosure to the stock exchange on Friday, the property developer said the board of directors approved, confirmed, and ratified the offer and issuance of 50 million perpetual preferred shares with a par value of P1.00 per share, at an offer price of P100.00 each.
The unissued preferred shares are non-voting, non-convertible, non-participating, and redeemable.
The dividend rate of the offer has yet to be determined.
The issue forms part of a shelf registration program covering 100 million preferred shares. 8990 Holdings filed a registration statement with the Securities and Exchange Commission last July.
Proceeds from the issue will finance the company’s land-banking activities, working capital and retirement of some loans, 8990 Holdings President and CEO Januario Jesus Gregorio B. Atencio III had said.
Net profit of 8990 Holdings dropped 44% to P1.22 billion in the first half on the back of continuing delays in the processing of new projects’ licenses and labor shortages in construction. – Krista Angela M. Montealegre
