SM Development Corp., the property arm of conglomerate SM Investments Corp., is raising fresh equity through a stock rights offering.
SM Development said in a disclosure to the stock exchange that its board approved the offering of 1.893 billion shares that allows shareholders to subscribe to one for every three stocks held.
The company has not pegged the offering price yet. SM Development could raise as much as P13.3 billion in proceeds based on its Wednesday’s closing price.
The company plans to use the net proceeds from the offering to finance land acquisitions and project development.
Share price of SM Development edged at P7.26, down P0.04 from Tuesday’s close.
This is the second time that SM Development will conduct a rights offering this year.
The property company at the start of the year raised P4.8 billion in stock rights offering to fund landbanking.
SM Development was earlier cited by Colliers International Philippines, a property research specialist, as the largest residential developer in Metro Manila in the first half of 2010, both in terms of the number of units sold and the value of sales.
SM Development as of end-June had 13 residential projects in the market, including Princeton Residences in Quezon City, Jazz Residences in Jupiter in Makati, Sun Residences beside Mabuhay Rotonda near Quezon Avenue in Quezon City, Light Residences in Mandaluyong and Wind Residences in Tagaytay City.
The company in June this year launched also My Place South Triangle in Panay Avenue corner Mother Ignacia Street, Quezon City. It is the company’s initial project under the My Place brand, which offers affordable residential condominium units starting at P1.1 million for a 20-square meter unit.
For details on, please contact Reby Ramirez @ +63 916.4044.555 / +63 922.883.9308 / +63 919.699.3572 or e-mail her at reby_ramirez@yahoo.com.
Source: Manila Standard, 09 September 2010
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