Regulator clears CPG’s preferred shares offering

CENTURY Properties Group, Inc. (CPG) has obtained clearance from the country’s corporate regulator to conduct a preferred shares offering which is expected to raise P3 billion.

In a disclosure to the stock exchange yesterday, the Antonio-led property developer said it has received on Friday a pre-effective letter from the Securities and Exchange Commission for its planned preferred shares offering.

This relates to the company’s intention of doing a primary offer of 20 million preferred A shares, which may be oversubscribed up to 10 million preferred A shares. It is looking to price the shares at P100 each.

If the plan pushes through, these shares will be listed and traded on the main board of the Philippine Stock Exchange, Inc. But for now, CPG will have to submit its final prospectus and transaction agreements, which will need the approval of the bourse operator.

When the listed firm disclosed the plan in September, it was looking to offer 10 million preferred A shares with an oversubscription option of up to 10 million preferred shares priced at P100 each. This would have raised the company P2 billion if oversubscribed.

It said then that the plan will involve the reclassification of 3 billion common shares to three billion preferred shares, priced at 53 centavos each. Stockholders approved the plan on Sept. 23.

A common difference between preferred shares and common shares is the voting rights, which is given to shareholders of common stocks but not of preferred stocks. But owners of preferred shares are commonly prioritized to receive cash dividends over those with common shares.

The property developer posted a net income of P704.56 million in the first six months of the year, growing 63% from last year, as its gross revenues rose 24% to P5.45 billion.

Shares in CPG at the stock exchange inched up 0.01 point or 1.69% to close at P0.60 each on Monday. — Denise A. Valdez