SLI to conduct follow-on offering

STA. LUCIA Land, Inc. (SLI) is looking to raise up to P8.40 billion from a follow-on offering within the year to finance its capital expenditures.

In a preliminary prospectus filed with the Securities and Exchange Commission (SEC), the listed property developer said it will offer up to three billion common shares to the public, consisting of 2.7 billion primary offer shares and 300 million for the over-allotment option.

At a price of P2.26 to P2.80 each, SLI could raise anywhere from P6.78 billion to P8.40 billion.

SLI expects to net P8.117 billion from the offering, should it completely exercise the over-allotment option and secure the maximum price for each share. About P6.78 billion of the proceeds will go to capital expenditures for new and ongoing projects.

The company will use P820 million for landbanking purposes, while the remaining P517.79 million will go to general corporate purposes. The funds are expected to be disbursed from the fourth quarter of 2019 until 2020.

Most of SLI’s upcoming projects are in Central Visayas, Western Visayas, and the Calabarzon Region. It also has developments in the Davao Region, Soccsksargen, Mimaropa, the Cordillera Administrative Region, and Metro Manila.

The developer’s prospective land acquisitions are also located in the provinces, most of which are in Calabarzon.

SLI tapped China Bank Capital Corp. as the offering’s issue manager, underwriter, and bookrunner.

The company’s public float will reach 26.79% upon listing, with its market cap to rise up to P31.35 billion.

Depending on regulatory approvals, SLI looks to finalize the issue price by Nov. 12. The offer is set to run from Nov. 18 to 29, in time for listing on Dec. 9.

SLI’s registration will need approval from the SEC and Philippine Stock Exchange.

The company earlier said it will spend P20 billion in capex over the next three years to expand its residential and commercial properties in the country.

At the same time, it will launch a combination of 28 residential and commercial projects, in addition to five condominium and hotel projects that could potentially generate P20 billion in reservation sales.

SLI’s net income attributable to the parent doubled to P883.74 million in the first half of 2019, against P432.61 million in the same period a year ago. Gross revenues also grew 70% to P3.496 billion.

Shares in SLI fell 2.05% or five centavos to close at P2.39 each on Thursday. — Arra B. Francia