A BROWN Co., Inc. is set to offer the first tranche of its 65-million preferred shares and follow-on public offer, with 10 million preferred shares priced at P100 per share.
In the company’s filing at the Philippine Stock Exchange on Tuesday, it said it will offer “10 million preferred shares at an offer price of P100 per share or P1 (billion) worth with an oversubscription option of up to 5 million preferred shares worth P500 million.”
“Proceeds from the offering will be used to sustain the company’s expansion,” the company added.
Specifically, P350 million of the proceeds will go to A Brown’s subsidiary, Irradiation Solutions Inc., to fund its E-Beam Facility Project in Tanay, Rizal.
The project is set to be the first commercial E-Beam facility built in the Philippines.
E-Beam technology is used globally to reduce microbial loads in spices, herbs, and cosmetic raw materials. It is also used to treat fruits and seafood to be of export quality and “is one of the most economical sterilization methods for medical devices.”
A Brown expects the project to expand to other areas nationwide as the market develops.
If there will be oversubscription, the listed firm said P600 million of the offer’s proceeds will be used to develop the company’s real estate projects in key cities in Luzon and Mindanao while P400 million will be spent for “strategic land banking initiatives” in Tanay, Cagayan de Oro City, Butuan City, and Bukidnon.
“Our focus continues to be on properties that underscore healthy, environment-friendly and low dense communities with a focus on city, mountainside, agricultural, golf and sea resort, and lifestyle developments,” A Brown President and Chief Executive Officer Robertino E. Pizarro said.
A Brown has tapped PNB Capital and Investment Corp. as the Sole Issue Manager, Lead Underwriter, and Sole Bookrunner for its offer, which will run from Nov. 15 to 19, 2021.
A Brown is primarily engaged in real estate developments in Northern Mindanao and in Rizal, but the company also has investments in power generation through affiliates Palm Concepcion Power Corp. and Peakpower Energy, Inc.
A Brown stocks at the exchange rose by 1.2% or one centavo on Tuesday to end at P0.84 each. — Bianca Angelica D. Añago
