THE Philippine Stock Exchange (PSE) has approved the P1.45-billion stock rights offering of Philippine Estates Corp., proceeds of which will be used for land acquisition and for general corporate purposes.

“The exchange’s approval of the listing of the right shares is subject to the company’s compliance with all applicable requirements and post-approval conditions of the exchange,” the PSE said in a listing notice on Monday.

According to its preliminary prospectus dated Nov. 18, Philippine Estates is planning to offer 1,445,549,830 common shares for one peso apiece.

Philippine Estates is offering the rights shares to all eligible shareholders, who will be entitled to subscribe to one rights share for every one common share held as of Dec. 2.

The company said the offer shares will be issued from its unissued authorized capital stock.

Philippine Estates’ principal shareholder, The Wellex Group, Inc., which holds 10.6% of the total outstanding shares of the company as of Sept. 30, will subscribe to its entitlement shares at the initial round and second round of the rights offer.

The company said The Wellex Group will also subscribe to the remaining entitlement shares that would not be taken up in the second round of the rights offer.

Philippine Estates is planning to conduct the rights offer from Dec. 6 to 13 for eligible shareholders and on Dec. 15 for the principal shareholder. Meanwhile, it is targeting a listing date of Dec. 24.

“Proceeds from the stock rights offer are intended to be used for the acquisition of land for the company’s pipeline of projects and the remaining balance to be used for general corporate purposes,” the company said in a disclosure on Monday.

The company has engaged Abacus Capital & Investment Corp. as the issue manager and underwriter for the transaction.

Shares of Philippine Estates went up by 17.39% or eight centavos on Monday to close at 54 centavos apiece. — Keren Concepcion G. Valmonte